On Demand Webinar
Webinar Details $219
- Webinar Length: 100 Minutes
- Guest Speaker: Steven Mercatante
- Topic: Taxation and Accounting
- Credit: ATATX 1.5, CPE 2.0, IRS 2.0
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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
- Introduction
- Overview - Expense Reimbursement and Fringe Benefits 00:00:21
- Overview - 1099/W-2 Reportable Payments 00:11:05
- Overview - Taxable Wages VS. Reimbursements 00:17:06
- Overview - Qualifying Fringe Benefits 00:18:10
- Overview - Working Condition Fringes 00:26:10
- Overview - De Minimis Fringes 00:23:16
- Issues Regarding Fringes And Expense Reimbursements - IRC Section 274 Modifications 00:27:25
- Accountable Plans 00:37:03
- Accountable Plans - Rules For The Employee 00:38:33
- Accountable Plans - Rules For The Contractor 00:49:00
- Watch Out For Sneaky Reimbursement Traps! 00:53:04
- Fringe Benefit/Expense Reimbursement Record-Keeping - Record Detail 00:55:14
- Fringe Benefit/Expense Reimbursement Record-Keeping - Expenses 01:05:31
- Fringe Benefit/Expense Reimbursement Record-Keeping - Record Retention 01:05:31
- Fringe Benefit/Expense Reimbursement Record-Keeping - Independent Contractors 01:07:45
- Transportation Reimbursed Expenses 01:08:06
- Transportation Reimbursed Expenses - Company Car And Executives 01:15:35
- Wrap-Up 01:15:40
- Protect Yourself 01:36:32
- Attendee Questions 01:37:11
- Presentation Closing 01:44:01
- Accountable Plan 00:37:11, 00:49:38, 00:53:50, 01:11:58, 01:16:21
- Accounts Payable (AP)00:17:13, 00:49:08
- Audit 00:43:58, 00:52:30
- B-Notice 00:13:13
- De Minimis 00:23:19
- Department of Labor (DOL) 00:48:22
- Expense 00:02:21, 00:14:13, 00:20:36, 00:30:28, 00:35:35, 00:44:56, 00:46:30, 00:58:39, 01:11:52, 01:14:49
- Expense Reimbursement 00:02:12, 00:14:25, 00:32:03, 00:49:33, 00:53:19, 01:08:39
- Fair Labor Standards Act (FLSA) 00:11:05, 00:48:24
- Fair Market Value (FMV) 00:14:45, 00:15:14
- Federal Insurance Contributions Act (FICA) 00:00:21
- Federal Unemployment Tax Act (FUTA) 00:00:21
- Form 1042 00:53:29
- Form 1042-S 00:53:30
- Form 1099-NEC 00:17:43, 00:38:32, 00:49:53
- Form W-2 00:01:57, 00:12:37, 00:14:37, 00:18:03, 00:21:50, 01:11:56
- Form W-8 00:53:26
- Fringe Benefit 00:02:12, 00:07:37, 00:14:47, 00:17:10, 00:20:11, 00:31:53, 00:49:32, 01:11:08
- Independent Contractor 00:01:54, 00:17:27, 00:49:36, 01:07:49
- IRC Section 132 00:19:03, 00:45:52
- IRC Section 274 00:27:25
- IRS Notice 972CG 00:13:08
- Liability 00:49:29
- Nonresident Alien (NRA) 00:53:09
- Per Diem 00:40:22, 00:43:20, 01:19:13
- Resident Alien 00:53:14
- Sole Proprietor 00:43:18
- Standard Mileage Rate 00:06:26
- Tax Cuts and Jobs Act 00:27:31, , 01:09:01, 01:11:14
- Tax Home 00:02:43, 00:03:06, 00:55:30, 00:56:31
- Travel Expense 00:02:19, 00:04:36, 00:18:36, 00:37:18, 00:56:37, 01:17:08
- Wage 00:14:58, 00:16:06, 00:17:11, 00:55:32, 01:08:41
- Working Condition Fringe Benefit 00:22:11, 00:45:49
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
B-Notice: A notice from the IRS stating that one or more tax ID numbers were missing from a 1099 or do not match the IRS records.
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)
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-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.
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.
IRS Notice 972CG: The IRS started mailing 972CG penalty notices in July 2013 regarding 1099's with missing or incorrect TIN/Name Combinations. A 972CG is a NOTICE OF PROPOSED CIVIL PENALTY. A simple way to prevent this costly penalty is to verify that your information is correct prior to filing.
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/)
Liability: In financial accounting, a liability is defined as the future sacrifices of economic benefits that the entity is obliged to make to other entities as a result of past transactions or other past events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.
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)
Resident Alien : A resident alien is a foreign person who is a permanent resident of the country in which he or she resides but does not have citizenship. To fall under this classification in the United States, a person needs to either have a current green card or have had one in the previous calendar year.
Sole Proprietor: A business that legally has no separate existence from its owner. The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.
Standard Mileage Rate: The standard mileage rate, also known as the mileage per diem or deductible mileage, is the default cost per mile set by the Internal Revenue Service (IRS) for taxpayers who deduct the expense of using their personal vehicles for business, charitable, or medical purposes.
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.
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.
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.
Working Condition Fringe Benefit: The working condition benefit is a type of fringe benefit employers offer employees. Working condition benefits include property and services employers provide to employees so they can perform their jobs.
