Simplifying Travel & Entertainment Rules & Recordkeeping

On Demand Webinar

Webinar Details $219

  • Rated:
  • Webinar Length: 100 Minutes
  • Guest Speaker:   Steven Mercatante
  • Topic:   Taxation and Accounting
  • Credit:   CPE 2.0, ATATX 1.5
All Access Membership

This webinar will help you develop an Accountable Plan for reimbursing employees and maintaining adequate accounting records thereby solidify the T&E expense deductions on the company’s annual income tax return.

Our helpful tips will be useful in training not only employees seeking reimbursement, but also the accounts payable staff reviewing the monthly employee expense reports, and tax staff reviewing records prior to preparation of the Federal income tax return.

Agenda:

  • Deductible and Non-deductible Meals 
  • Developing a Fool Proof Accountable Plan
  • Records and Documents Needed for Meals Expenses
  • Records and Documents Needed for Travel Away from Home
  • Documents Needed When Reimbursing Expenses Using the Per Diem Method
  • Records and Documents Needed for Use of Employee’s Vehicles
  • Records and Documents Needed for Company Vehicles
  • Which Employee Reimbursements are Taxable Wages
  • Which Contractor Reimbursements go into Form 1099

Learning Objectives:

  • Deductible and Non-deductible Meals 
  • Developing a Fool Proof Accountable Plan
  • Documents Needed When Reimbursing Expenses

    1. Introduction 
    2. What’s New 00:01:22
    3. What’s New: 1099 E Filing Changes 00:03:28
    4. Overview - Expense Reimbursement And Fringe Benefits 00:13:30
    5. Overview - 1099/W-2 Reporting 00:24:08
    6. Overview - Taxable Wages VS. Reimbursements 00:28:20
    7. Overview - Qualifying Fringe Benefits 00:30:10
    8. Overview - Working Condition Fringes 00:40:55
    9. Overview - De Minimis Fringes 00:40:59
    10. Issues Regarding Fringes And Expense Reimbursements 00:45:10
    11. Accountable Plans 00:54:31
    12. Accountable Plans - Rules For The Employee 00:55:18
    13. Accountable Plans -  Rules For The Contractor 01:04:20
    14. Watch Out For Sneaky Reimbursement Traps! 01:07:47
    15. Fringe Benefit/Expense Reimbursement Record-Keeping - Record Detail 01:10:47
    16. Fringe Benefit/Expense Reimbursement Record-Keeping - Expenses 01:18:42
    17. Fringe Benefit/Expense Reimbursement Record-Keeping - Record Retention 01:19:32
    18. Fringe Benefit/Expense Reimbursement Record-Keeping - Independent Contractors 01:21:46
    19. Transportation Reimbursed Expenses 01:22:09
    20. Transportation Reimbursed Expenses - Company Car And Executives 01:22:06
    21. Wrap-Up 01:28:15
    22. Protect Yourself 01:32:08
    23. Attendee Questions 01:33:00
    24. Presentation Closing 01:42:28
    • Accountable Plan 00:54:39, 01:02:16, 01:20:18, 01:28:37
    • Audit 01:28:10
    • De Minimis 00:37:36, 00:42:12
    • Department of Labor (DOL) 01:03:36
    • Expense 00:19:45, 00:47:03, 00:51:59, 01:03:33, 01:20:28
    • Expense Reimbursement 00:05:49, 00:13:45, 00:45:41
    • Fair Labor Standards Act (FLSA) 00:24:14
    • Fair Market Value (FMV) 00:25:59, 00:26:42
    • Federal Insurance Contributions Act (FICA) 00:23:27
    • Federal Unemployment Tax Act (FUTA) 00:23:28
    • FIRE - File Information Returns Electronically 00:06:06
    • Form 1042 00:04:04, 01:05: 57
    • Form 1042-S 00:02:24, 01:06:58
    • Form 1099-MISC 00:12:10
    • Form 1099-NEC 00:12:10
    • Form W-2 00:01:44, 00:14:54, 00:25:51, 00:26:10, 00:30:36
    • Form W-8 00:02:06, 01:05:53
    • Form W-9 00:02:17, 00:02:36
    • Fringe Benefit 00:05:54, 00:13:47, 00:21:13, 00:23:40, 00:26:55, 00:30:13, 00:31:48, 00:35:26, 00:45:04, 01:28:18
    • Independent Contractor 00:01:39, 00:28:37, 00:35:45, 01:04:22, 01:21:48
    • Information Returns Intake System (IRIS) 00:06:17, 00:11:16
    • IRC Sec. 3406(a) 00:01:28
    • IRC Sec. 6041(a) 00:01:28
    • IRC Sec. 6109(a)(2) 00:01:28
    • IRC Section 132 00:31:15, 00:37:32
    • IRC Section 274 00:45:10
    • Nonresident Alien (NRA) 00:02:13, 01:06:06
    • Per Diem 00:57:08
    • Tax Cuts and Jobs Act 00:14:01, 00:45:14, 00:50:38
    • Tax Home 00:15:44, 00:17:00. 01:08:08
    • Transmitter Control Code (TCC) 00:06:37, 00:08:16
    • Travel Expense 00:15:14, 00:17:42, 00:39:27, 01:05:02, 01:11:18, 01:18:47
    • Unrelated Business Income (UBI) 00:04:28
    • Vendor 00:05:22, 00:06:32
    • Wage 00:27:31, 00:27:48

    Accountable Plan: An accountable plan is a plan that follows the Internal Revenue Service (IRS) regulations for reimbursing workers for business expenses in which reimbursement is not counted as income. ... However, these expenses must be business-related to fall under an accountable plan.

    Audit: A formal examination of an organization's or individual's accounts or financial situation

    De Minimis: Too trivial or minor to merit consideration.

    Department of Labor (DOL): The United States Department of Labor is a cabinet-level department of the U.S. federal government responsible for occupational safety, wage and hour standards, unemployment insurance benefits, reemployment services, and some economic statistics; many U.S. states also have such departments.

    Expense: Offset (an item of expenditure) as an expense against taxable income.

    Expense Reimbursement: Expense reimbursement is a method for paying employees back when they spend their own money on business-related expenses. These expenses generally occur when an employee is traveling for business but can occur in other work-related situations. (www.thebalancecareers.com)

    FIRE - File Information Returns Electronically: The IRS FIRE system is the electronic network used to accept and process most types of filing forms. Technically, it stands for File Information Returns Electronically.

    Fair Labor Standards Act (FLSA): The Fair Labor Standards Act of 1938 29 U.S.C. § 203 is a United States labor law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week. It also prohibits most employment of minors in "oppressive child labor".

    Fair Market Value (FMV): The term fair market value is used throughout the Internal Revenue Code among other federal statutory laws in the USA including Bankruptcy, many state laws, and several regulatory bodies. In litigation in many jurisdictions in the United States, the fair market value is determined at a hearing.

    Federal Insurance Contributions Act (FICA): The Federal Insurance Contributions Act is a United States federal payroll contribution directed towards both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.

    Federal Unemployment Tax Act (FUTA): The Federal Unemployment Tax Act (FUTA) is a federal law that imposes an unemployment tax on employers. The FUTA tax funds the federal government's oversight of each state's unemployment program. Only employers pay FUTA tax. You must deposit the tax quarterly and file an annual form.

    Form 1042: Form 1042, also "Annual Withholding Tax Return for U.S. Source Income of Foreign Persons", is used to report tax withheld on certain income of foreign persons.

    Form 1042-S: Form 1042-S is used to report amounts paid to foreign persons (including persons presumed to be foreign) who are subject to income tax withholding. For an individual taxpayer, Form 1042-S is a document provided to you (and the IRS) by the payer of the income reported.

    Form 1099-MISC: The Form 1099-MISC is an Internal Revenue Service (IRS) tax return document used to report miscellaneous payments made to nonemployee individuals, such as independent contractors, during the calendar year. (www.shrm.org)

    Form 1099-NEC: In the context of 1099 tax filing, NEC stands for “Nonemployee Compensation” (the first letters of the three words None, Employee and Compensation). Most tax payers recognize NEC as box 7 on Form 1099-MISC. NEC is used to report income paid to independent-contractors / the-self-employed (referred to as 1099 employees for simplification purposes). So, while employers report income that gets paid to employees on Box 1 (Wages, tips, other compensation) of the W2 form, payers report income that gets paid to none-employees on Box 7 (NEC) of the 1099-MISC form. As an individual, if you received form 1099-MISC instead of Form W-2 then the payer did not consider you an employee and did not withhold income tax or social security and Medicare tax.

    Form W-2: Form W-2 is an Internal Revenue Service tax form used in the United States to report wages paid to employees and the taxes withheld from them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship. - Wikipedia (https://en.wikipedia.org/)

    Form W-8: Form W-8 is filled out by foreign entities (citizens and corporations) in order to claim exempt status from certain tax withholdings. The form is used to declare an entity's status as non-resident alien or foreign national who works outside of the United States.

    Form W-9: Form W-9 (officially, the "Request for Taxpayer Identification Number and Certification") is used in the United States income tax system by a third party who must file an information return with the Internal Revenue Service (IRS). It requests the name, address, and taxpayer identification information of a taxpayer (in the form of a Social Security Number or Employer Identification Number). - Wikipedia (https://en.m.wikipedia.org/)

    Fringe Benefits: An extra benefit supplementing an employee's salary, for example, a company car, subsidized meals, health insurance, etc.

    IRC Section 132: Internal Revenue Code Section 132(a) provides eight types of fringe benefits that are excluded from gross income

    IRC Section 274: Section 274(k) generally provides that no deduction is allowed for the expense of any food or beverages unless (A) such expense is not lavish or extravagant under the circumstances, and (B) the taxpayer (or an employee of the taxpayer) is present at the furnishing of such food or beverages.

    IRC Section 3406(a): Requires that, under certain circumstances, including the payee's failure to provide a TIN, the payer must perform backup withholding.

    IRC Section 6041(a): Provides that persons engaged in trade or business must report certain payments on an information return.

    IRC Section 6109(a)(2): Requires that a payee provide a TIN to the payer when the payment will be reportable on an information return.

    Independent Contractor: An independent contractor is a person or entity contracted to perform work or provide services to another entity as a non-employee. As a result, independent contractors must pay their own Social Security and Medicare taxes. - Investopedia (https://www.investopedia.com/)

    Information Returns Intake System (IRIS): The Information Returns Intake System (IRIS) Taxpayer Portal is a system that provides a no cost online. method for taxpayers to electronically file Form 1099 series. The Taxpayer Portal allows you to enter. data to create Forms 1099 by either keying in the information or uploading a .csv file.

    Nonresident Alien (NRA): This income is taxed at a flat 30% rate, unless a tax treaty specifies a lower rate. Nonresident aliens must file and pay any tax due using Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents.

    Per Diem: (Latin for "per day" or "for each day") or daily allowance is a specific amount of money an organization gives an individual, often an employee, per day to cover living expenses when traveling for work. - Wikipedia (https://en.wikipedia.org)

    Tax Cuts and Jobs Act: The Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, Pub.L. 115–97, is a congressional revenue act of the United States originally introduced in Congress as the Tax Cuts and Jobs Act, that amended the Internal Revenue Code of 1986.

    Tax Home: A tax home is the general locality of an individual's primary place of work. It is the city or general vicinity where his or her primary place of business or employment is located, regardless of the location of the individual's residence.

    Transmitter Control Code (TCC): The Transmitter Control Code (TCC) is an identifier that the IRS uses to distinguish different electronic filing companies. It's necessary when you need to file for a correction. Getting a TCC depends on how you file your 1099 forms

    Travel Expense: Travel expenses are costs associated with traveling for the purpose of conducting business-related activities. Travel expenses can generally be deducted by employees as non-reimbursed costs incurred while traveling away from home specifically for business purposes.

    Unrelated Business Income (UBI): For most organizations, unrelated business income is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose that is the basis of the organization's exemption

    Vendor: A vendor is a person or business that supplies goods or services to a company. Another term for the vendor is the supplier. In many situations, a company presents the vendor with a purchase order stating the goods or services needed, the price, delivery date, and other terms.

    Wage: A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.


    Guest Speaker

    • Steven Mercatante

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    ATATX Credit

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