Understanding the Tax Implications of Travel Reimbursement

Is Reimbursement for Travel Work Subject to Payroll Taxes?

For businesses with mobile employees, one question stands out: is reimbursement for travel work subject to payroll taxes?

Travel reimbursement is a common practice for companies that have employees who travel for work. It is important for both employers and employees to understand the tax implications of travel reimbursement to ensure compliance with the law.

What's in a Log?

When it comes to travel reimbursement, keeping a detailed log of expenses is essential. This log should include information such as the date of travel, destination, purpose of the trip, and the amount spent on transportation, meals, and lodging.

By maintaining a thorough travel log, employees can provide accurate documentation of their expenses, which can help reduce the risk of audits or disputes with the IRS.