Employer policies regarding owned automobiles must be in place to protect the employer from IRS issues. The following document is a group of policies for employers to choose from when determining how they will handle both employer provided, and employer reimbursed, automobile usage.
Rules for the Deduction of Home Office Expenses In order to qualify as expenses, your office must be your principal place of business and used regularly and exclusively. Under IRC §280(A)(c), a home office qualifies as a principal place of business if the office is being used to conduct administrative or management activities and there is no other fixed location where the taxpayer conducts substantial administration or management activities. Activities that are administrative or managerial in nature include billing customers, clients or patients, keeping books and records (accounting), ordering supplies, setting up appointments, and forwarding orders or written reports. Exclusive [...]
The question of whether a worker is an independent contractor or employee for federal income and employment tax purposes is a complex one. It is intensely factual, and the stakes can be very high. If a worker is an employee, the company must withhold federal income and payroll taxes, pay the employer's share of FICA taxes on the wages plus FUTA tax, and often provide the worker with fringe benefits it makes available to other employees. There may be state tax obligations as well. These obligations don't apply for a worker who is an independent contractor. The business sends the [...]
An accountable plan is one under which you reimburse your employee for employment-related expenses. The employee is requiredto “adequately account” for the expenses. This means you must receive an expense record (account book, diary, expense statement, etc.) along with receipts and other documentation indicating the expense amount, time and place, business purpose, and business relationship to anyone else involved (e.g., a client, supplier, etc.). For the plan to qualify as an accountable plan, it must also require the employee to pay back any excess payments received. For example, say you pay $1,000 under an expense account arrangement and the employee [...]