mickeysaver
<font color=blue>WINNER of the world's worst limer
- Joined
- Jun 2, 2002
- Messages
- 6,206
Gabby started a new job on January 3rd of 2006. It is a job that requires her to travel. She gets a base salary. She gets the occasional bonus. She has a corporate credit card. She uses the card to pay for her flights, rental cars, food on the road, and gas. She uses the company Staples account to purchase her office supplies. They also cover her DSL internet service. All of this stuff is accounted for on an expense report that she submits on a regular basis. They send her a check to pay the expenses that are charged to the credit card on an as needed basis.
Since all of the expenses are for her work and the credit card is a corporate card that is only used for corporate expenses, will she be taxed on the money that the company puts into her expense account to cover these company based expenses?
I almost could understand if the government taxed the food and gas allowances. She is in the middle of a huge freak out right now, because she just realized that her expenses have put her in a really high tax bracket, if it is all taxable. This job is much different from anything that she has ever done before. Her income was always hourly before this job, so this is a learning experience. TIA Maggie
Since all of the expenses are for her work and the credit card is a corporate card that is only used for corporate expenses, will she be taxed on the money that the company puts into her expense account to cover these company based expenses?
I almost could understand if the government taxed the food and gas allowances. She is in the middle of a huge freak out right now, because she just realized that her expenses have put her in a really high tax bracket, if it is all taxable. This job is much different from anything that she has ever done before. Her income was always hourly before this job, so this is a learning experience. TIA Maggie
Maggie
