TMCnet Feature
August 12, 2022

6 Work-Related Expenses to Reimburse Your Employees For



Employers are responsible for ensuring their employees are taken care of. That means paying them a fair wage and providing benefits like health insurance and retirement plans. But it also means helping your employees get reimbursed for expenses they incur as part of their jobs, such as mileage reimbursement or office supplies. These six expense reimbursements will help you keep your employees happy while saving your business money.



Mileage Reimbursement

While the IRS lists a standard, some companies choose to go above and beyond to help account for the wear and tear and added fuel costs when employees use their own vehicles. Employees need to keep records of their trip expenses, exact start and end miles, and more.

Reimbursing employees for mileage may also have tax implications; depending on how much they drive and how much they're reimbursed per mile. Because of this, some employers prefer to use company cars and a Visa fleet card to pay for gas. This streamlines the process for everyone because the employee doesn’t need to get reimbursement and they can only purchase fuel with these cards.

Maintaining Your Mobile Device

As technology changes, it can be difficult for some people to keep up with the latest trends. But if you’re a business owner or manager who wants your employees to stay on top of the latest developments in their fields, then it might be time for you to start reimbursing them for their mobile devices. This is especially true if you require your staff to be reachable after hours, you need them to download certain apps, or their mobile device is essential for doing business.

Reimbursing for Home Offices

As a small business owner, you are allowed to reimburse your employees for their home office expenses. This means that if an employee has to work from home, you can deduct the cost of his or her internet connection, computer equipment, and furniture from your taxes when you give them reimbursement for these costs.

Paying for Meals

The meal and entertainment expenses tax deduction is a big deal for employees, who can enjoy the tax savings of eating out on the company's dime. This tax code is specifically designed to help you pay for meals that your employees need in order to do their jobs. For example, if your employee works outside normal business hours or away from their office, they may need food at some point and this covers those costs.

If an employee is working during normal business hours and needs some extra sustenance and they can’t leave the office, this will cover those costs as well. It’s important to ensure there are legitimate business needs for these meals to ensure that you and your employees are following all applicable tax codes.

Travel Expenses

Employees who travel can get reimbursed for travel expenses. This includes everything from the cost of airline tickets, hotels, conference fees, meeting locations, and more. All meals and other work-related expenses should also be reimbursed during these trips. Many companies set a daily limit for food based on the region where the staff member will be traveling to. And some will even cap the hotel costs as well.

Continuing Education

Continuing education is an important tool for keeping your employees up to date on their skills, languages, and software. It also helps them learn new marketing techniques. The benefits of continuing education include providing employees with new skills that they can use in their jobs. This means more efficient work and less time spent training replacements when high-level employees leave the company.

It also helps to expand your employees' skill sets so that they can take on more challenging projects if needed or even move into other departments if the need arises. Plus, it improves employee morale when they are reimbursed for learning something new.

Conclusion

If you’re looking for ways to improve your business and help your employees thrive, look no further than expense reimbursement. It is one of the most effective ways to increase morale, productivity and loyalty in the workplace. With these tips and tricks, you can feel confident that both yourself and your employees are getting the most out of their hard work when it comes time for an expense report.



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