Accountable Plans for 2021

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

Open
Close

Big Ideas for Small Business®
Find it for free on the App Store.
Get