Simplifying Travel & Entertainment Rules & Recordkeeping
Please see below for additional instructions and information regarding this program.
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.
- 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
- Deductible and Non-deductible Meals
- Developing a Fool Proof Accountable Plan
- Documents Needed When Reimbursing Expenses
- Travel, Meals, and Entertainment 00:02:59
- Changes in TCJA 00:03:20
- No More Entertainment Deduction 00:04:19
- The Consequence 00:06:29
- Moving Expense Reimbursements 00:09:27
- Business Meals 00:11:38
- On-Premises Meals Deduction 00:12:31
- Other Meals Expense Generally 00:16:29
- COVID-19 Relief 00:18:17
- General Meal Per Diem Allowance 00:20:35
- Transportation Workers 00:23:33
- The 50% Meals Limit 00: 25:50
- The 50% Meals Limit Flow Chart 00:27:52
- Travel Expenses 00:32:15
- Home Office and Commuting 00:35:33
- Summary of Deductibility 00:39:16
- Tax Home 00:41:42
- Temporary Assignments 00:44:33
- Travel Primarily for Business 00:48:07
- Business Days 00:51:47
- Example: Counting Business Days 00:55:12
- Exceptions to Trip Being Primarily for Business 00:58:05
- Luxury Water Travel in General 01:01:49
- Cruise Ships 01:04:03
- Info Attached to Return 01:07:11
- Conventions Outside North America Area 01:08:49
- North America Area 01:10:42
- Other Travel Related Expenses 01:12:05
- Other Travel Related Expenses (cont’d) 01:13:18
- Documentation 01:16:17
- Burden is Always on Taxpayer 01:16:22
- Accountable Plans 01:17:32
- Exceptions to Documentation 01:20:01
- General Info Required 01:22:34
- Hotel Documentation 01:24:09
- Restaraunt Documentation 01:25:28
- Expense Logs 01:26:41
- Expense Logs (cont’d) 01:26:55
- W-2 Reporting 01:29:34
- W-2 Reporting of Reimbursements 01:29:49
- 1099 Reporting 01:34:06
- Independent Contractor Consequences 01:34:12
- The Common-Law IRS Factors 01:35:09
- 1099-MISC Filing Requirements 01:35:52
- Timing 01:36:11
- Form 1099-MISC 01:38:01
- Form -NEC 01:39:14
- Presentation Closing 01:40:29
- Accountable Plan 01:17:37, 01:30:14
- Expense Reimbursement 00:09:34
- Form 1099-NEC 01:36:26
- Form 1099-MISC 01:35:52
- Form W-2 01:29:37, 01:38:04
- Invoice 00:07:30
- Per Diem 00:20:35
- Standard Meal Allowance 00:16:41
- Tax Cuts and Jobs Act 00:03:32, 00:14:03
- Tax Home 00:41:43
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.
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)
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 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 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/)
Invoice: An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer. Payment terms are usually stated on the invoice.
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)
Standard Meal Allowance: The standard meal allowance is the federal M&IE (meals and incidental expenses ) rate. You can use the standard meal allowance method as an alternative to the actual cost method. It allows you to use a set amount for your daily M&IE, instead of keeping records of your actual costs.
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.
Chuck Borek is a practicing attorney and founder of the Borek Group, LLC. Chuck is also a CPA, and his background includes five years as a partner in a public accounting firm. He received his law degree and MBA summa cum laude from the University of Baltimore in 1993, where he was editor-in-chief of the Law Review. He has been teaching professionally since 1989, including four years as an Associate Professor of Accounting and two years as a Visiting Assistant Professor of Law. He ha... View Full Profile
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