A non-client called to ask me a question - not sure why they didn't call their own accountant. Anyway the question deals with mileage.
A city owned cafe hires a manager, who uses her own car to deliver meals daily and pickup groceries. The organization has decided that they will now reimburse her mileage. They do have all of the documentation to back up the mileage expense. If they reimburse her for the whole year it is around $4300. How do they treat this? Since it is a direct reimbursement it shouldn't show up on her w2 or on a 1099 - correct. The next question - can the organization reimburse her for the years past (2005 & 2006)? It is goint to amount to a large check.
Thank you in advance for the response.
Tonia
A city owned cafe hires a manager, who uses her own car to deliver meals daily and pickup groceries. The organization has decided that they will now reimburse her mileage. They do have all of the documentation to back up the mileage expense. If they reimburse her for the whole year it is around $4300. How do they treat this? Since it is a direct reimbursement it shouldn't show up on her w2 or on a 1099 - correct. The next question - can the organization reimburse her for the years past (2005 & 2006)? It is goint to amount to a large check.
Thank you in advance for the response.
Tonia
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