GROWTH. TRANSFER. LEGACY.
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Here's the rub. Effective January 1, 2018, an employee no longer can deduct any of his or her unreimbursed employee business expenses. You'll need to read on to see how a slight modification to the arrangement can leave more after-tax dollars in the employee's pocket while costing the employer nothing (and even saving a few dollars).
Most companies cover their employees' business expenses by reimbursing them for their actual expenses or by paying a travel or mileage allowance. (Here’s a shocker – such applies to law firms – go figure) Such arrangements are subject to strict tax rules concerning what qualifies as a legitimate reimbursement arrangement and what is treated (at least for tax purposes) as additional compensation to the employee. Click on the attached file to continue reading.
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