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Indeed. Paying my $100 restaurant bill costs the company ~$100. Making sure an extra $100 shows up in my bank account costs a lot more than $100 due to taxes.
by dagw 4y ago
Indeed. Paying my $100 restaurant bill costs the company ~$100. Making sure an extra $100 shows up in my bank account costs a lot more than $100 due to taxes.
- bombcar 4y agoand if your manager hands you a $100 bill, and expenses it (or took it from petty cash) now you're suddenly the recipient of tax fraud. is the IRS going to actually care? probably not, unless it was systematic and notable, but see: https://www.irs.gov/government-entities/federal-state-local-governments/de-minimis-fringe-benefits https://www.irs.gov/government-entities/federal-state-local-... >Cash Benefits >Cash is generally intended as a wage, and usually provides no administrative burden to account for. Cash therefore cannot be a de minimis fringe benefit. An exception is provided for occasional meal or transportation money to enable an employee to work overtime. The benefit must be provided so that employee can work an unusual, extended schedule. The benefit is not excludable for any regular scheduled hours, even if they include overtime. The employee must actually work the overtime. > Meal money calculated on the basis of number of hours worked is not de minimis and is taxable wages. (this stuff is why some managers will just buy pizza for everyone from their personal money, and never bother expensing it, paperwork is not worth it)