Remove CPA Remove Expense Reimbursements Remove tax return
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Understanding Accountable Plans

Withum

Prior to the Tax Cuts and Jobs Act of 2017 (“TCJA”), unreimbursed out-of-pocket expenses paid by employees were treated as a miscellaneous itemized deduction on an employee’s personal tax return to the extent these out-of-pocket expenses exceeded 2% of the employee’s adjusted gross income.

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Expense Reimbursement vs Company Credit Cards: What Skagit County Business Owners Need to Decide

SkagitCountyTaxServices

You probably didn’t realize that there are actual pros and cons to expense reimbursement for employees, etc. Now, let’s dive into handling business expenses paid by employees. Thus, you’re supposed to pay the equivalent sales tax in the form of use tax and file a separate tax return for this purpose.