Employee Expense Reimbursements: IRS Rules, Accountable Plans, Per Diems & OBBB Updates

Overview:

Employee expense reimbursements may seem straightforward, but when handled incorrectly they can become a serious liability. If reimbursements don’t meet IRS standards, they may be disallowed as deductible expenses or even reclassified as employee compensation. That means your company could suddenly be responsible for payroll taxes, back payments, and costly penalties — turning what should be a simple reimbursement into a financial and compliance headache.

The key to protecting your organization lies in structuring your program as an accountable plan. But ensuring compliance isn’t always simple — even seasoned payroll and accounts payable professionals struggle to keep up with changing IRS rules, shifting per diem rates, and new tax law provisions like those created under the 2017 Tax Cuts and Jobs Act (TCJA) and the One Big Beautiful Bill (OBBB). Employers must also navigate the fine line between what is truly a business expense, what may be considered extravagant, and which categories — such as moving expenses, uniforms, meals, or entertainment — have special limitations.

This webinar will give you the clarity and confidence to manage reimbursements correctly. You will learn how accountable plans work, when and how per diems can simplify travel reimbursements, and the documentation required to substantiate non-taxable expenses. We will also explore real-world examples and court case studies that highlight common mistakes and their consequences, while sharing best practices from businesses that have built effective, compliant policies.

By the end of this session, you will know how to evaluate your current policies and procedures, align them with IRS requirements, and strengthen the coordination between payroll and accounts payable. With the right knowledge and tools, you can minimize audit risks, prevent employee fraud, and ensure your reimbursement practices remain both compliant and cost-effective.

In this webinar we will cover:

I.Accountable versus Non Accountable Plans

• General guidelines about non-taxable expenses vs wages
• 3 elements of an accountable plan- business connection, substantiation and reconciling
• Employment tax treatment

II.The Use of Per Diems

• Amounts for Lodging, Meals and Incidentals
• Recordkeeping
• Sources

III. Rules of Thumb – General Guidelines from the IRS

• Employer vs Employee benefit
• In the course of trade or business
• Reasonable vs Extravagant
• Accounting and Documentation

IV. Specific Types of Expense Reimbursements

• Pre-Employment Expenses
• Moving expenses
• Meals and Entertainment
• Uniforms
• Automobile Travel
• Employee Personal Property

V. The TC&JA and OBBB

• Meals and Eating facility
• Moving expenses
• Transportation Fringe Benefits

VI. Best Practices for Payroll Managers 

• A/P and Payroll coordination
• Reimbursement policy
• State regulations
• Identification and Prevention of employee fraud

VII. Case Studies

Handouts included:

Attendees will receive three exclusive downloadable handouts, including:

• State-by-State Expense Reimbursement Requirements Guide
• Top 10 Common Mistakes in Employee Expense Reimbursements (and How to Avoid Them)
• Employee Expense Reimbursement Audit Checklist

Why Should You Attend?

Employee expense reimbursements are one of the most heavily scrutinized areas during payroll tax audits. A single mistake — whether misclassifying an expense, failing to document properly, or treating reimbursements outside of an accountable plan — can cause the IRS to reclassify payments as taxable wages. The result? Unexpected payroll taxes, penalties, and unnecessary costs for your organization.

This webinar will help you cut through the confusion by breaking down IRS rules, accountable versus non-accountable plans, per diem allowances, and the taxable limitations of common expenses like meals, entertainment, uniforms, and moving costs. You’ll also see real-world examples and case studies of where companies went wrong, and how you can avoid those pitfalls.

By attending, you’ll walk away with the clarity to strengthen your reimbursement policies, align payroll and A/P practices, reduce compliance risks, and ensure your reimbursement program remains both fair to employees and fully compliant with IRS requirements.

Who Will Benefit?

This webinar is designed for payroll, HR, finance, and compliance professionals who are responsible for managing employee expense reimbursements, ensuring IRS compliance, and minimizing audit risk. Those include:

• Payroll Managers & Payroll Specialists
• HR Managers & HR Directors
• Finance Managers & Controllers
• Accounts Payable Professionals
• Compliance Officers
• Accounting & Tax Professionals
• Compensation & Benefits Managers
• Operations Managers
• Business Owners & Executives
• Internal Auditors & Risk Management Professionals