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What you as the employer has to do depend on whether the reimbursement plan that your company has in place is considered accountable, or non-accountable. SEE BELOW:
Employers. If you are an employer and you reimburse employee business expenses, how you treat this reimbursement on your employee's Form W-2 depends in part on whether you have an accountable plan. Reimbursements treated as paid under an accountable plan, as explained next, are not reported as pay. Reimbursements treated as paid under nonaccountable plans , as explained later, are reported as pay. See Publication 15 (Circular E), Employer's Tax Guide, for information on employee pay.
Refer to the section under Reimbursements.
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You are welcome. Yes, you will need to adjust the SS and Medicare Wages boxes accordingly. SEE BELOW:
Payments to your employee for travel and other necessary expenses of your business under a non-accountable plan are wages and are treated as supplemental wages and subject to income, social security, Medicare, and FUTA taxes.
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