Tag: IRS

Wage and Hour: Labor Commissioner Proposes Rules for Employee Expense Reimbursement

The California Labor Code requires employers to repay employees for all necessary expenditures employees incur in performing their jobs. However, the law doesn’t provide guidance as to what precisely must be reimbursed and at what rates, or whether paying an increased salary or commission satisfies the reimbursement requirement. Now, the labor commissioner has issued proposed […]

Taxes: IRS Raises Mileage Reimbursement Rates for 2007

The IRS has increased the standard mileage rate commonly used to reimburse employees for business use of a car to 48.5 cents per mile, up from 44.5 cents in 2006. The new rate will apply to miles driven beginning January 1, 2007. Employers who use the IRS standard mileage rate to reimburse employees may deduct […]

Leave: IRS Issues Guidance on Tax Treatment of Donated Leave

According to a new IRS notice, leave donated by an employee to a qualified employer-sponsored leave bank following a major disaster is not considered income to the donating employee, as long as the leave received by an affected employee is treated as wages for purposes of FICA, FUTA, and income tax withholding. Our HR Management […]