qbteachmt
Level 15

Here is another example:

You don't want the employee to be "out of pocket" on these costs, so you Advance them $500. At the end of the month, they turn in an Expense report, with mileage and other proof of qualifying costs. You reduce the $500 loan by the total you owe them under An Accountable Plan. Then, you refill their loan amount back to the $500 Advance limit. When they quit, they either give you their change or you run the remaining amount loaned through payroll so that is it taxed to them.

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