Expense Reimbursements 2026 - Proper Recordkeeping and Accounting for OBBB and Payroll Compliance

In order for expense reimbursements to be non-taxable, they must be distributed and recorded under an "accountable plan."
You will discover what that means, and how to evaluate your expense reimbursement policy for compliance. Expense reimbursements are commonly reviewed and scrutinized in payroll tax audits. The use of per diems are a common way to simplify many travel related expenses. Both the IRS and DGA publish the current amounts by geographic location.

Keep in mind the rules of thumb in regards to non-taxable expense reimbursement. They must be for the employer benefit, used in the course of your trade or business, not be considered extravagant, and properly accounted for. We will discuss the details of each, as well as specifics for various types of expenses. You should know the taxable limitations for moving expenses, meals, entertainment, uniforms and more. The OBBB extended the expense deductions under the 2017 TC&JA, and created others. We will discuss the latest details.

Finally, analyze your current policies and procedures by learning the best practices of current businesses. Learn from court case studies about common mistakes made in expense reimbursement practices. With all the knowledge in the webinar, both payroll and A/P will sleep better at night knowing when reimbursements are truly non-taxable.
 

• Accountable versus Non Accountable Plans
  • General guidelines about non-taxable expenses vs wages
  • 3 elements of an accountable plan - business connection, substantiation and reconciling
  • Employment tax treatment
• The Use of Per Diems
  • Amounts for Lodging, Meals and Incidentals
  • Recordkeeping
  • Sources
• Rules of Thumb - General Guidelines from the IRS
  • Employer vs Employee benefit
  • In the course of trade or business
  • Reasonable vs Extravagant
  • Accounting and Documentation
• Specific Types of Expense Reimbursements
  • Pre-Employment Expenses
  • Moving expenses
  • Meals and Entertainment
  • Uniforms
  • Automobile Travel
  • Employee Personal Property
• The TC&JA and OBBB
  • Meals and Eating facility
  • Moving expenses
  • Transportation Fringe Benefits
• Best Practices for Payroll Managers
  • A/P and Payroll coordination
  • Reimbursement policy
  • State regulations
  • Identification and Prevention of employee fraud
• Case Studies

• HR Managers
• Payroll Managers
• Budget Personnel
• HR and Payroll Compliance Managers
• Department Managers
• Fringe Benefit and Travel Staff

Mark Schwartz is an employment tax specialist and has over 15 years of employment tax experience as an independent consultant and as a payroll tax auditor with the State of California. He has managed an audit caseload of 20 ongoing audits, from small home-based businesses to large multi-national corporations. He is expert at defining regulatory and statutory requirements from local, State and Federal government agencies; and helping the average businessperson understand what that mean to their business. He has processed weekly and bi-weekly payroll checks plus tax forms for businesses with hourly as well as exempt workers, multistate operations and a wide variety of benefits.

Mr. Schwartz provides consulting services encompassing payroll processing and payroll tax issues. These include payroll tax minimization, payroll tax compliance reviews, independent contractor studies, use of electronic transfers, deductions, benefits, etc. Mark has represented both clients and the State in front of the State Appeals Board. He understands the complexities of local wage laws, unemployment and disability claims, and other wage and benefit issues affecting your employees.

Mark prides himself on his outstanding customer service skills. He listens attentively to his clientele, helping them bridge the gap between the small business world and Government bureaucracy. He eagerly assists with clients needs, and feels that educating clients toward faster, accurate and more complete payroll processes provides the most value.

Mark is a participating member of the American Payroll Association. He earned his BA and MBA in Finance at Santa Clara University. He has held Certified Internal Auditor and Certified Investment and Derivatives Auditor Credentials. Mark is currently pursuing a Certified Payroll Fundamentals Credential with the American Payroll Association.