If a company provides a credit card for the convenience of reimbursable expenses, should there be a policy that details allowable and unallowable expenditures?
Ann Kiernan replies:
Absolutely! All employers should have a uniform system for reporting and reimbursement of ordinary and necessary business expenses incurred by employees. Workers need to know the rules, and also that deviating from the policy may result in the loss of the tax deduction to the company or additional taxable income to the employee. Items commonly covered in expense account policies are: business travel, meals and lodging, professional dues, gifts and entertainment, seminar registration fees, and the like.
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