How to compensate employees for the hours spent traveling on business is becoming one of the major concerns of the payroll department today. Many recent changes in federal and state wage and hour rules as well as economic pressures on employers and employees alike can create a situation that can practically invite noncompliance lawsuits-especially if the travel time results in overtime being owed to the employee.
But it isn’t just the DOL that is interested in travel pay. The IRS also has strict regulations on when employees can be paid for travel expenses without it being considered wages. Does the company use the per diem method to reimburse employees or the accountable plan method? Or do you even need to have a method when it comes to reimbursing employees for travel expenses?
This course discusses the rules and regulations that must be followed when paying an employee for travel pay. It includes what is travel pay, best practices for handling the payments, how it affects overtime calculations and what is required on the state level. It also discusses the requirements for taxing travel expenses under IRS rules.
Course Key Concepts: Payroll, travel pay, per diems, accountable plan, nonaccountable plan, travel reimbursements, overtime.
Learning Objectives
- Explore travel pay requirements under the Fair Labor Standards Act (FLSA) and state wage hour laws
- Discover payroll best practices for paying travel pay correctly
- Identify how travel pay affects overtime calculations and the travel pay differences for exempt and nonexempt employees
- Recognize the Internal Revenue Service (IRS) requirements for travel pay including:
- Per diems
- Accountable and nonaccountable plan
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Prerequisites
No advanced preparation or prerequisites are required for this course.