Employee tool reimbursements — IRS fires warning shot with recent guidance
$225.00
Description
Abstract: An accountable plan reimburses employees who buy small tools on their own. These reimbursements are deductible as a business expense, while workers won’t incur employment or income taxes on them. But the IRS recently released Revenue Ruling 2012-25, which fires a warning shot at employers whose reimbursement plans may have fallen out of compliance with the rules for accountable plans. This article explains how to maintain compliance, while a sidebar offers an example of a plan that is not compliant.
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