Summary

What is changing?

Why is it changing?

How does this affect you?

Meal Rate Increases

Taxable Reimbursements

Travel Advances

Payment Schedule

Example

Important Considerations
  for Employees

Reimbursement Changes Brochure

Why is it changing?

Certain types of employee payments are counted as part of taxable gross income by the IRS.  These payments are technically "supplemental wages" and as such are subject to Medicare, Social Security, and FIT withholding.  (IRS Circular E, Publication 15, page 12)

We have always reported the taxable payments on your W2 at the end of the year, and you have been paying income tax on them, however neither the employee nor the state has been paying Medicare or Social Security as required.