A practical Guide to Handling Taxable Benefits

Employers are regularly required to reimburse employees for various expenses incurred in the course of employment. In today’s HR Alert, we focus on travel and subsistence expenses, and when such expenses can be reimbursed without the deduction of tax.

In general expenses paid by an employer on behalf of an employee are taxable benefits. Reimbursement of travel and subsistence may be made without deduction in certain circumstances and subject to certain conditions being fulfilled.

The employer’s policy if any, the wording of the contract of employment and the method in which such refunds are paid are all relevant in determining if tax is payable on such refunds.


Conditions to be Satisfied

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