Accounts payable (AP) processes numerous payments during the year on behalf of or directly to employees. Employees are given payments for expenses or are provided benefits that may be impractical to process through payroll, so they are processed through AP. These can include such disbursements as business expense reimbursements, educational assistance, auto allowances, relocation or moving expenses, club dues, medical expenses, dependent care, employee referral awards, and suggestion awards. Some benefits do not involve direct payment to employees but may be taxable nonetheless. These include personal use of a company vehicle, in-kind dependent care, health club memberships, employer-provided meals, length-of-service and safety awards, free use of company-provided services, cell phones, Christmas or other holiday gift certificates, and employee recognition awards.
But what is the tax status of all of these types of payments? Is it taxable and reportable or nontaxable and still reportable or nontaxable and non-reportable? Those are the questions that must be answered for each and every payment each and every time one is made.Who should make the determination on the taxation and reporting? How should the information be provided to payroll if needed? Those questions and many more will be answered in the webinar. This webinar discusses how, by working together all year long AP and Payroll can ensure compliance with the taxation and reporting requirements of the Internal Revenue Code. The webinar reviewsthe various types of payments made through accounts payable, how they should be taxed and how they should be reported to payroll to ensure the information is processed in a timely and professional manner.
Why Should you Attend:
Attend this 90 minute presentation to learn the best practices for both accounts payable and payroll when it comes to working together to ensure the company's compliance with the taxation and reporting of fringe benefits and other payments made through accounts payable.
Objectives of the Presentation:
The attendee will learn:
Who can Benefit:
- How sharing information all year long instead of only at year end ensures greater compliance
- Why payroll should make the call when deciding what is or is not taxable and reportable under the IRS rules and who gets the personal penalties if there is an error.
- Why payroll should come to AP for the information and not vice versa and why AP should make sure they do
- What is the only payment off the table when it comes to taxing and reporting through payroll and why it that may not apply in all cases.
- When De Minimis applies and when it does not when it comes to taxation.
- When are moving expenses taxable and reportable and when only taxable or only reportable.
- How auto allowances may be taxable one month and not the next.
- When employee achievement awards are taxable and when they are not.
- When cell phone bills must be scrutinized for taxable wages.
- When employee achievement awards must be reported.
- How gifts certificates must be handled to comply with IRS regulations
- Payroll professionals
- Accounts Payable professionals
- Human Resources
- Accounting Personnel
- Business Owners
- Any individual or entity that must deal with the complexities and requirements of determining the taxation of items paid out of accounts payable