Tax Tips Small Business

Reimbursing Your Employees for Business Expenses

What method should you choose?

Attracting and keeping good employees is a goal in any business. One way to make life easier for your employees is to have an easy to use reimbursement plan. Travel, transportation, moving, and educational expenses are common reimbursable expenses. As the employer, you have the option to set up an accountable or nonaccountable reimbursement plan. Under either plan, you can deduct many of the business expenses paid to or for employees. However, the plan you choose can make a big difference to your employees.

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Small Business Quick Tip

The Social Security wage base increases to $106,800 in 2009 and 2010. This means that you are no longer required to withhold social security tax for employees after meeting this threshold. However, you are required to withhold Medicare taxes regardless of the amount of wages paid.
Income Tax Resources
Web Links
Display # 
# Web Link Hits
1   Link   Massachusetts Department of Revenue
Your link to numerous online services and the answers to various questions about taxes in the Commonwealth of Massachusetts.
137
2   Link   Connecticut Department of Revenue Services
A resource for your questions about various tax programs in the State of Connecticut.
214
3   Link   Internal Revenue Service
One of the most frequently visited sites in America. The Internal Revenue Service has more than you would ever want to know regarding taxes.
170
Wednesday, 08 September 2010
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Tax Tips Personal

Overlooked Employee Business Expenses
Don't miss out on deductions you are allowed to take

Unreimbursed employee business expenses are allowed as a miscellaneous itemized deduction provided they exceed two percent of your adjusted gross income when combined with all your other miscellaneous expenses.
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Personal Quick Tip

Not only will you save money at the pump if you buy a hybrid vehicle, you may be eligible for a credit on your income tax return.