Choosing the best way to reimburse employee travel expenses
Reimbursing employee travel expenses can provide tax benefits to both your business and the employee. Your business can deduct the reimbursements (subject to a 50% limit for meals and entertainment), and they’re excluded from the employee’s taxable income. But the expenses must be legitimate and the reimbursements must comply with IRS rules, generally by using either the per diem method or an accountable plan. Whether you have questions about which reimbursement option is right for your business or the additional rules and limits that apply to each, contact us.