Employee expense reimbursement is one of the targets of a current IRS audit initiative. Employers often provide travel advances, business expense reimbursement, or use of company property to employees. Unless expense reimbursements are made under an accountable plan, the payments must be included in employee wages. Accountable expense reimbursement plans provide tax savings for both employers and employees and allow the employer to exclude expense reimbursement from employee wages. However, these accountable reimbursement plans have strict documentation and record-keeping requirements, requiring timely reporting and return of excess reimbursements by employees. For certain expenses, per diem arrangements can be used in lieu of actual substantiation of the amount of expense. But insufficient documentation or faulty procedure can result in reclassification of the reimbursements as wages. This results in additional tax and possibly penalties. An employer may even become liable for taxes it failed to withhold from the employee reimbursement. While the Tax Cuts and Jobs Act (TCJA) did not change the treatment of employee business expenses reimbursed under an accountable plan, employee expenses that are not reimbursed under an accountable plan may no longer be deducted by the employee.

In this practical webinar, you will explore these requirements, determine how to report reimbursements that do not qualify under the accountable plan rules, and identify reimbursements that must be included in employee wages. You will also learn how to properly report expense reimbursements and facilities provided to employees in compliance with IRS requirements.
Among other things, you will learn about:

  • Employee business expenses and reimbursements under the Internal Revenue Code
  • Accountable and non-accountable expense reimbursement plans
  • Substantiation and documentation required to exclude reimbursement or benefits from wages
  • Options for meeting substantiation requirements
  • Advantages and effective use of per diem payments
  • How to control the risk of a “pattern of abuse” of per diem payments
  • Valuation and treatment of personal use of company property (vehicles, cell phones, etc.)
  • When expense reimbursements or use of company resources must be included in wages
  • Travel advance and payment card administration
  • The importance of timely processing of reimbursements and collection of excess advance funds
  • Control and accounting procedures and the roles of payroll and accounts payable

Upon course completion, you will be able to:

  • Determine whether an expense reimbursement qualifies for exclusion from employee wages
  • Substantiate various expenses and benefits under an accountable plan
  • Process reimbursements and collect excess advance funds in a timely manner
  • Distinguish when expense reimbursements or use of company resources must be included in wages
  • Recognize when per diem rates may be used and why employers may want to use them
  • Calculate maximum per diem rates and how to use the high low method
  • Establish and administer an accountable expense reimbursement plan
  • Identify the importance of control and accounting procedures related to expense reimbursement
Faculty Member
Patrick Haggerty

Patrick A. Haggerty is a tax practitioner, author, and educator. His work experience includes non-profit organization management, banking, manufacturing accounting, and tax practice. He has taught accounting at the college level for over 31 years. He is licensed as an Enrolled Agent by the U. S. Treasury to represent taxpayers at all administrative levels of the IRS and is a Certified Management Accountant. He has written numerous articles and a monthly question and answer column for payroll publications. In addition, he regularly develops and presents webinars and presentations on a variety of topics, including payroll tax issues, FLSA compliance, information returns, and accounting.

CLE Credits (Law)

Credit Value Type Format
NALA - - Credit not available
NFPA - - Credit not available
AL 1.5 General
On-Demand/Recording
AK 1.5 General
On-Demand/Recording
AR Not Available General
On-Demand/Recording
AZ 1.5 General
On-Demand/Recording
CA 1.5 General
On-Demand/Recording
CO 1.8 General
On-Demand/Recording
CT 1.5 General
On-Demand/Recording
DE 1.5 General
On-Demand/Recording
FL 2 General
On-Demand/Recording
GA 1.5 General
On-Demand/Recording
HI 1.5 General
On-Demand/Recording
IA 1.5 General
On-Demand/Recording
ID 1.5 General
On-Demand/Recording
IL 1.5 General
On-Demand/Recording
IN 1.5 General
On-Demand/Recording
KS Not Available General
On-Demand/Recording
KY 1.5 General
On-Demand/Recording
LA 1.5 General
On-Demand/Recording
ME 1.5 General
On-Demand/Recording
MN 1.5 General
On-Demand/Recording
MO 1.8 General
On-Demand/Recording
MS Not Available General
On-Demand/Recording
MT 1.5 General
On-Demand/Recording
NC 1.5 General
On-Demand/Recording
ND 1.5 General
On-Demand/Recording
NE 1.5 General
On-Demand/Recording
NH 1.5 General
On-Demand/Recording
NJ 1.8 General
On-Demand/Recording
NM 1.5 General
On-Demand/Recording
NV 1.5 General
On-Demand/Recording
NY 1.5 General
On-Demand/Recording
OH 1.5 General
On-Demand/Recording
OK 2 General
On-Demand/Recording
OR 1.5 General
On-Demand/Recording
PA 1.5 General
On-Demand/Recording
RI 1.5 General
On-Demand/Recording
SC Not Available General
On-Demand/Recording
TN 1.5 General
On-Demand/Recording
TX 1.5 General
On-Demand/Recording
UT 1.5 General
On-Demand/Recording
VA Not Available General
On-Demand/Recording
VT 1.5 General
On-Demand/Recording
WA 1.5 Law and Legal Procedure
On-Demand/Recording
WI 1.5 General
On-Demand/Recording
WV 1.8 General
On-Demand/Recording
WY 1.5 General
On-Demand/Recording

In some CLE states, the course will be submitted to the bar after you register. If for any reason the course is not approved, we will fully refund your registration fee. If a state is listed on this course, then we are confident the course fits that state's standards and already is or will be approved for credit.

HR Credits

Credit Value Type Format
HRCI 1.5 General
On-Demand/Recording
SHRM 1.5 On-Demand/Recording

Accounting Credits

Credit Value Field of Study Format
CPE 1.5 Taxes On-Demand/Recording

Clear Law Institute is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org. For more information regarding administrative policies such as complaint and refund, please see the tab above on our Money-Back Guarantee or contact us at 703-372-0550. 

CPE Credit - Maximum Credit Hours: Please see above. You must attend at least 50 minutes to obtain credit. Fields of Study: Please see above. Teaching Method: Lecture. Upon completion of this course, you will receive a certificate of attendance. Final approval of a course for CPE credit belongs with each state’s regulatory board.

Clear Law Institute has registered with the Texas State Board of Public Accountancy as a CPE Sponsor. This registration does not constitute an endorsement by the Board as to the quality of our CPE Program.

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Griffin H.

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Almost all of our webinars are approved for continuing education credit, including CLE (in all states), CCB, CPE, HRCI, IRS and SHRM credit.  Unlike many providers, we don’t charge you any additional fee to process your credit.  If you have specific questions, please call us at 703-372-0550 or contact us.

Can I still receive Continuing Education Credits if I view the webinar recording instead of the live presentation?

In most cases, the answer is yes. Recorded webinars are not eligible for CLE credit in the following states: AR, KS, MS, NE, and RI. In all other jurisdictions, recorded programs are eligible for credit. In addition, CPE credit is not available for recorded webinars. Please note that recorded webinars are only eligible for a certain period of time based on the jurisdiction. To ask about your specific type of Continuing Education Credit or the requirements in your jurisdiction, please call us at 703-372-0550 or contact us.

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