qbteachmt- I'm trying to understand what the advantage of having a car allowance would be vs enhanced compensation. If mileage is not tracked, the car allowance is compensation. Is that difference...
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qbteachmt- I'm trying to understand what the advantage of having a car allowance would be vs enhanced compensation. If mileage is not tracked, the car allowance is compensation. Is that difference that if mileage is tracked for car allowance it is not taxable? Using the car allowance gives you both options?
Employer gives credit card to sales employee to use for gas and other business expenses. Credit card given to employee for gas purchases to eliminate mileage tracking. Employee does not track busine...
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Employer gives credit card to sales employee to use for gas and other business expenses. Credit card given to employee for gas purchases to eliminate mileage tracking. Employee does not track business mileage. Receipts for gas and other purchases are submitted to employer. It seems that the gas purchases would fall into the "non-accountable" plan and be included in W2 compensation since mileage is not being tracked. None of the credit card purchases are included in employees W2 compensation. Also, employer increased salary by $500 per month to cover vehicle expenses except for gas. What is the difference in a car allowance and paying higher salary if both are included in W2 compensation? Trying to figure out how to be in compliance with the IRS and also with CA 2802. Does anyone know about this?