Discussion:Employee reimbursement

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Discussion Forum Index --> Accounting Questions --> Employee reimbursement

Www.cpa1.biz (talk|edits) said:

11 March 2014
My client works from home and is hiring a new employee. The employee lives 200 miles away and will be traveling to a third site (client's office) one day a week which is close to the employer and a 200 mile commute for the new employee. When he travels there he will rent a hotel and stay there for 3 days to work at the client's site and then return home after day 3. My client is going to pay the travel, hotel and food expenses of the employee but he does not want to include it in his taxable wages if possible. Could this fall under an accountable plan and be expensed by the employer and not included in the EE wages. My concern is that the employee will only be traveling to this one site and it will be for an indefinite time. It appears to me that this might be considered the employee just traveling to work.

Kevinh5 (talk|edits) said:

11 March 2014
The temporary work location must be expected to last (and actually last) less than 1 year for it to not be deemed taxable compensation to the employee. Since this is an indefinite project, it is taxable.

Www.cpa1.biz (talk|edits) said:

12 March 2014
Thank you Kevinh5.

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