Using Reimbursement-Allowance Arrangement Functionality in web2expense

     A “reimbursement or allowance arrangement” provides for payment of advances, reimbursements, and charges for travel, meals, and entertainment expenses incurred by company employees during the ordinary course of business. Upon satisfying substantiation requirements, a company and its employees can deduct the allowable amount on their tax return. Due to the differences between accounting methods and tax laws, these amounts may not be the same. For detailed information it is advised to check IRS publication 535.

     Expense allowance is an integrated part of the Travel Authorization Request (TAR) module in web2expense TE (w2eTE). Users can request expense allowance by filling out a TAR form and submitting that form’s approvals and payment.  In addition, users can enter their allowance request and projected expenses on the same form. Having these line items allows companies to comply with IRS rules for an accountable and nonaccountable plan.

     After completing their expense reports in web2expense the company’s employees, management and accounting department can view reimbursements clearly and make proper filing for the employee’s W2 forms.

The following video depicts how a user can enter allowance/reimbursement request in Travel Authoriazation Request (TAR) form.