Mileage reimbursement to employees.
My question is on mileage reimbursement to employees. We would like to reimburse employees for mileage incurred from home to the place of business (not the employees' headquarters) without deducting the normal commute from the mileage calculation. For example, if the employee lives 10 miles from headquarters and is required to travel to another location that is 30 miles away from his/her home, our plan would be to reimburse the employee for the full 30 miles using standard IRS rate each way instead of 20 (30 less l0). If we do so, does it make the the mileage taxable? Our mileage reimbursement is part of our business expense policy that meets the IRS definition of an accountable plan. According to the IRS, expenses are not taxable if they meet the definition of an accountable plan. Please advise. Thanks!
You are correct as to the scope of the accountable plan rules.
Thus if your employee meets the accountable plan rules then in general reimbursed amounts are not reportable.
But again this is as long as the reimbursement meets the "accountable plan" rules of the tax regulations.
How do I report medical plans reimbursing employees/members for gym memberships
What are the reporting implications for a Self-Funded medical plan that will reimburse portions of gym memberships (at the employers direction) to members/employees and their spouses/dependents? In order to qualify for reimbursement the members and their spouses/dependents must meet certain criteria, such as a minimum usage of the gym, gyms that offer certain types of services, etc.
So, the questions are:
- Are these reimbursements reportable?
- If so, are they reportable: on a W2 by the employer, as it is a self-funded plan and it is their employees being reimbursed; or on a 1099 MISC by the Insurance Company that is administering the health plan on their behalf
- Or, could this be considered a reduction in premiums (non-reportable)?
Great questions. Let's get you your answers. We will answer your three questions as asked but first there is a few things we just want to remind you about employer provided benefits and the reportability of such benefits.
Travel Vouchers and Reporting to Employees on 1099?
RE: 1099'S AND EMPLOYEES
Some of our sales people were given a $3,000 travel voucher. The sales manager would like to report this on a 1099 instead of a W-2. Would that be correct?
Also we are a 'Dealer' for Caterpillar and they would be willing to reimburse us for this expense - in that case, could we issue a 1099 to these sales people who are also are employees?
Please let me know if you need additional information.
We have enough information to answer your questions.
Here is what we are keying in on in doing so:
Your headline state's "1099's and employees".
If in fact...
How to Report Health Insurer Reimbursements for Medical Expenses In A Self-Funded Plan Arrangement?
In a scenario where a health insurer reimburses a member for medical expenses that do not meet the requirements IRS section 213, specifically expenses related to travel costs associated with getting medical care away from home, are those payments:
- Reportable by the health insurer on a Form 1099 MISC, or
- Reportable by the employer on a W-2 form
Assume in this scenario that the health insurer is making the payments at the instruction of the employer, and that it is a self-funded health plan arrangment. So, in this case the insurer is purely writing checks at the instruction of the employer. Also assume that these payments are outside the scope of the health plan, as indicated above.
It is my assumption that this should be reported by the employer on a W-2, and not by the insurer/health plan on a 1099.
Are Employee Reimbursements Form 1099 Reportable?
A supervisor in our company has requested an A/P check for to an employee to reimburse him for the value of damage to his toolbox when being shipped from one location to another. I know generally you can not pay an individual as an employee thru payroll and thru A/P. Would this type of transaction be 1099 reportable and acceptable to process as an AP transaction?
Employee reimbursements can be tricky for a number of reasons. But if you follow some clear rules then the process can be made much smoother.
Form 1099 Question for insurance company that is planning an incentive trip that agencies will qualify for with different criteria such as policy count and loss ratio?
We are an insurance company that is planning an incentive trip that agencies will qualify for with different criteria such as policy count and loss ratio. Just wondering about a few things that hopefully you'll be able to help out with.
1. Would the agency be able to choose who would get the 1099 (i.e. agency, individual going on the trip,etc)?
2. What box the amount will go into since the trip is based on the criteria (Box 3 or Box 7)?
3. If the agency gets the 1099 - would they still get it if they are incorporated?
We will answer your questions as you have enumerated them as follows:
Follow Up to Related Reimbursing Charter School Employee Question
First of all, we are assuming that these are your teachers - meaning your employees as they are employees of schools we have chartered and founded. Thus, that we are really dealing with a W-2 type question here and not a 1099 question (for pay to non-employees). Please note that in the 1099 sense our recommendation is the same as it always is regarding any payments made to non-employees: that is you lump everything together you pay to them, report it all on the 1099, and let them handle the deductions on their own taxes. Ok, now back to educational fringe benefits as they apply to your employees.
They are not our employees, they are employees of the charter schools. We only control the appointment of the board members and where the state appropriations go. Whether that be to a management company or to the school themselves. The schools have some financial and academic reporting requirements but they pay their teachers. We just offer to our charter school teachers the ability of being reimbursed for their tuition. So what type of payment should that be considered?
Reportable payment if make reimbursement check from university to charter school employee?
We charter several schools and receives an oversight fee from the state to charter these schools. The charter schools office decided to use some of this oversight income to reimburse charter school teachers for the cost of the classes. The classes that the charter school office will cover only occur at our university. My question is whether we have a reportable payment for our university if we make the reimbursement check from our university to the charter school employee?
People Paid to Vacate Property. How to Report if at all?
We have a program whereby occupants living in a defaulted property agree to be paid to vacate the dwelling in an efficient (deadline) and legal manner (no damages, theft, etc). The amounts vary, but are always over $1000.00. Is this really a service provided? Is there an argument that this should be reported in box 3?
The program always involves a contract described as "Relocation Assistance Agreement". Within the document, the payment is described as "representing relocation assistance" for vacating the property on or before a specified date.
Does this definition allow for a better argument towards Box 3? Or Box 7? I am torn on this one. Three separate IRS agents, when guestioned about this type of payment (I originally called them with IRS Levy questions), all verbally stated that they believed Box 7 was correct. But I have had 5+ calls/year from tax accountants saying that they believe the payments are misclassified and should be corrected to Box 3.
Payment to Deceased Employee's Estate and Funeral Home Reimbursement
A deceased employee's estate was reimbursed for all expenses related to his funeral in the same year as his death. The expenses were invoiced by the funeral home and through AP payment was made to the funeral home in care of the employee's estate. Would we report the funeral home as well as the estate similar to how some attorney settlements are dual reported, or, because the ultimate beneficiary is the estate we would only need to report to the estate?