Reimbursement or advance for travel expenses
A reimbursement is a payment you make to your employees as a repayment for amounts they spent (such as gas and meals) while conducting your business. Generally, the employee completes a claim or expense report detailing the amounts spent. Do not include a reasonable reimbursement (which is part of your business expenses) in the employee's income.
An advance is an amount you give to employees for expenses they will incur on your business. An accountable advance is one that you give to an employee who has to account for their expenses by producing vouchers and return any amount they did not spend.
Usually, a reimbursement or an accountable advance for travel expenses is not income for the employee receiving it unless it represents payment of the employee's personal expenses.
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