Dear XXXXXXXX,
Are the employees required to keep receipts and turn them in?
Dear emmy,
He needs to keep recods to show the time, place, and business purpose of his employees' travel.
I asked about the receipts, because that is one of the factors affecting how the perdeim should be reported on the W-2.
If per diem is paid and expense reports are not required he is operating a non-accountable plan, which means the per diem IS considered taxable income to the employee. It has to be reported accordingly.If he is reimbursing employees based on expense reports, then the reimbursement is for expenses incurred and is NOT taxable.You include the per diem in Box 1 of the W-2, but NOT box 3 and 5.
he can still expense the blanket.
the only problem he has is determining if he exceeds the standard M&IE pedeim allowed by the IRS and that he is appropriately reporting it on the W-2.
HR & Business Operati&ons C&onsultant
Central Michigan University, MSA Candidate; Global Compensation Operations Mngr; AA Degree Lib Arts