Accounting & Bookkeeping Forum

[sgundrum]

In reading Pub 15, I think its pretty clear, however, I did come across some not so clear statement and was wondering if anyone had hints for me.

If you do not meet or exceed the Gov Per Diem Rate per day, and you cut a check for the employee as an advance then you do not need to get receipts and then it is considered non accountable plan?

If an employee was advanced $140, then turned in receipts on an expense report and was asking for $700 more, siting $ hotel at x and meals at x and taxi's at x, wouldn't I then have to deduct the $140 or put the advance to payroll for taxing?

Thanks

[primebkpr]

The accountable factor is easily determined by the receipts. No receipts, not accountable: receipts equal accountable. The per diem rates are the maximum the IRS will allow the business to deduct.