4306 Subsistence Expense Reimbursement Reportable to the Internal Revenue Service (IRS)
Posted on October 21, 2021 at 12:49 PM by Kansas Department of Administration
The IRS requires employers to include fringe benefits in an employee's gross income reported on form W-2. Fringe benefits defined by the IRS include certain payments of meal allowances and other expenses incurred during non-overnight travel or subsistence payments exceeding IRS established maximum reimbursement rates. (Non-overnight travel is considered to be travel where no lodging expense is incurred.) These fringe benefits generally must be paid through the payroll process and are subject to withholding of applicable contributions and taxes. However, the IRS allows for infrequent meal money provided to an employee, to enable the employee to work overtime, to be considered a "de minimis" fringe benefit and be excluded from reportable income. Meals paid in accordance with the policy in paragraph 4100 (E) are considered to meet the requirements for exclusion from the employee's gross income and, therefore, would not require payment through the payroll process. Except for certain reimbursement payments to elected officials, legislators and board members, most state employees are not affected by these requirements.