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Employer Issues
Reply to "Tax issues around expense reimbursement"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I give my nanny $50/month for gas and "incidentals" (she has a car she can use, but prefers to use her own when she has only one kid -- her choice, so I don't feel obligated to also reimburse mileage; I would prefer she use our car/carseats in fact, but I have chosen not to make an issue of it). I added this as a perk when we cut her hours, because she still had the same amount of commuting. Because it's not for anything in particular, I include it in taxable wages.[/quote] If she's driving your child on activities or doing errands then your $50 isn't a "perk"[/quote] It sounds like the poster you are quoting provides a vehicle for nanny to drive and then an additional $50/mth as a perk. The fact that nanny chooses to use her own car instead of her employer's car does not make the $50 any less a "bonus". Of course if nanny is using the $$ to buy stuff for or do activities with her charge, then I would agree it should be treated as no taxable reimbursement rather than a perk.[/quote]
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