Respuesta :
Reimbursements under non-accountable plans will be subject to income tax, FICA tax, and unemployment tax. In essence, nonaccountable plan reimbursements are wages and must be reported on the employee's W-2.
How should I submit my repaid business expenses?
You are not required to report the amount since reimbursements made under the accountable plan are not considered earnings and are not subject to tax. On the Form W-2, leave off the sum from the employee's salary. Instead, enter a code L in Box 12 of the Form W-2.
Are business expenses that are repaid treated as income?
Employees who get reimbursement for business costs under a non-accountable plan are regarded to have earned income, and their W-2 forms must reflect this.
How should I classify reimbursed expenses?
Since your deposit and reimbursement do not count as business-related revenue or expenses, you can classify them as transfers. This can be used in situations where you pay a business expense using personal finances and then pay yourself back. They won't be considered while calculating your taxes.
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Answer:
debiting Cash and crediting Notes Receivable
Explanation:
