The compliance and financial risks of mishandling employee expense reimbursements have spiked in recent years. And the IRS is in the middle of a wide-ranging audit crackdown on employment-tax issues.
Would your books survive an IRS spot-check? Do you know which reimbursements for employee expenses should be treated as expenses … and which as compensation?
If handled incorrectly, employee expense reimbursements can be disallowed as expenses, meaning they’d be considered compensation to employees. The result: an unhappy employee – and the church would be on the hook for the related payroll taxes and penalties.
Spot the holes in your expense-reimbursement compliance before the IRS does. Get educated now on the new rules of employee expense reimbursements.
- Which employee reimbursements should be treated as expenses and which as compensation
- Which payments made to employees are subject to payroll tax
- The most common reimbursement mistakes made by churches
- Whether you should run expense reimbursements through payroll or accounts payable
- When to use per diems and how to account for them
- The rules for accountable plans, and how they apply to employee expense and travel reimbursements
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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (888) 421-0101
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