Travel and Entertainment Expenses

 

1.  An employee traveled to Australia on business.  He cashed in his frequent flyer miles, so the plane ticket ended up costing $35, instead of $650.  However, he claimed the full $650 on his T&E form.  What amount do we reimburse him — $35 or $650?

 

You should reimburse the employee for his out-of-pocket expenses, or $35.  Under the accountable plan rules, you may reimburse employees, tax-free, for expenses they actually incur.

 

Back To FAQs