If you reimburse employees for business expenses (e.g., driving their vehicles on company business; internet access if they work from home), do it using an accountable plan. The reimbursements are tax free to employees and not subject to payroll taxes, while costs are deductible by the employer. For driving, you can use the IRS standard mileage rate to reimburse employees (56¢ per mile in 2021). #IdeaoftheDay
Barbara Weltman
Big Ideas for Small Business, Inc.
Subscribe and download our eBook, "150+ Tax Deductions for Small Business A to Z."
Footer
It's important to take care of ourselves and take steps to nourish ourselves--body, mind and soul. We may have to do this in different and creative ways now that many of us are staying at home. It's still important that we take time for ourselves. #selfcare #Health