Excess mileage reimbursement

[JJStephens]

Ever have a brain freeze? I've answered this question a dozen times but at the moment I'm drawing a complete blank (my guess is that 4 straight 80 hour weeks is to blame) & I can't seem to find the answer in any of my resources.

A payroll client just discovered that she had reimbursed (to the tune of $744) an employee for mileage during 2007 that included commuting and other non-qualifying trips. How do I report this on the employee's W2?

[jainen]

>>Ever have a brain freeze?<<

I'll answer your first question first, because it's easier. Someone else can tackle your second question.

Yes, sometimes my mind gets so overwhelmed that only Joss Whedon can save me.

[RoyDaleOne]

The excess amount as

wages in box 1.

The amount up to the

federal rate is reported

only in box 12—it is not

reported in box 1.

The excess is subject to withholding and SS.

I just found out that the employee can op put of the witholding requirement.

[NECPA in NEBRASKA]

Are you really a Joss Whedon fan or is that a figure of speech? I am a huge fan. My son finds me a huge embarrassment. He says that I'm too old.

Bonnie

[jainen]

>>really a Joss Whedon fan<<

Oh yes, absolutely. Though I confess I find most of Angel too intense and complex for my feeble mind.

[NECPA in NEBRASKA]

Angel doesn't have the humor that Buffy did. I loved Firefly, too. Nothing helps tax season for me like a dose of fantasy.

[TAXBILLY]

Sometimes I wonder if the congress types who write these laws live in their own fantasy world.

taxbilly

[joanmcq]

Firefly rules!!!