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Trying to determine insurance amounts. Per dium is paid for ME&I while on assignment. I am hoping that Workers comp premium should only be charged on true wages. Does anyone know?
Note - employees are short term not perm. 3 month assignments.
Thanks

2007-09-26 12:06:08 · 3 answers · asked by Anonymous in Business & Finance Insurance

3 answers

ME&I being, meals, expenses & ???

Any reimbursement or allowance for meals, gas, etc, is NOT considered wages.

2007-09-26 13:26:57 · answer #1 · answered by Anonymous 7 · 0 0

It depends if it was an accountable or non-accountable expense. Accountable is not considered wages.

Accountable plan:
To be an accountable plan, your reimbursement or allowance arrangement must require your employees to meet all three of the following rules.
1) They must have paid or incurred deductible expenses while performing services as your employees.
2) They must adequately account to you for these expenses within a reasonable period of time.
3) They must return any amounts in excess of expenses within a reasonable period of time.

Non-accountable does not meet these criteria.

2007-09-26 12:19:26 · answer #2 · answered by Anonymous · 1 0

Per Diem is considered WAGES unless it is expense reimbursement. Ask your employer's payroll department how they are reporting it to the IRS.

2007-09-26 12:11:02 · answer #3 · answered by Mike 7 · 0 0

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