2

I am an hourly employee. I receive a separate reimbursement check from my regular paycheck. My company does not tax the reimbursement and does not add it to my yearly gross amount. Is it taxable? Are they going to add it to my W-2 at the end of the year?


Note 1:

I get it every week, the amount is $12 per hour ($480 for a 40 hour week.) not for company expenses.

Note 2:

The check says "Reimbursement" under the heading pay type. it is possible that it is for a combination of Mileage/housing/food since the job site is in the middle of the desert in the middle of nowhere.

5
  • What is it a reimbursement for? Is it to cover company expenses that you paid out-of-pocket? Commented Apr 6, 2013 at 18:30
  • No, I get it every week, the amount is $12 per hour ($480 for a 40 hour week.) not for company expenses.
    – Tony
    Commented Apr 6, 2013 at 20:09
  • Sorry no idea The check says "Reimbursement" under the heading pay type. it is possible that it is for a combination of Mileage/housing/food since the job site is in the middle of the desert in the middle of nowhere.
    – Tony
    Commented Apr 6, 2013 at 20:32
  • 1
    I added the comments to the question, as they're significant.
    – littleadv
    Commented Apr 6, 2013 at 20:59
  • 1
    I hate to be this guy, but you need to ask HR or whoever cuts the checks. Reimbursement is one thing and Per Diem is another.
    – MrChrister
    Commented Apr 12, 2013 at 5:49

1 Answer 1

5

Reimbursements are only non-taxable if they're from a qualified reimbursement plan. To qualify, basically, you have to submit receipts.

Since what you're describing is not a reimbursement against receipts, it is likely to be taxable. It looks like a way to raise your salary without writing it down on the books as such. An accounting trick for the investors, I suppose.

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .