When your small business employees and adjusts transmission perform the operations, will come a time when you need an employee to reimburse expenses. Whether the cost of office supplies is a business lunch, travel to Expo or healthcare, it is important to the different types of employees to understand refund and how to explain them. Let us look at three main types a glance. 
1) reimbursement
The first main type of financial reimbursement. These are expenses of an employee for business purposes. According to the IRS, these types of expenses may include:
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business (more in the next section)
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education or training
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business supplies
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business tools
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Other business expenses
be tax deductible for business expenses for the company (and tax-free condition by the employee have), they must fall within the definition of a "responsibly plan" and fulfill drop these three requirements:
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workers have paid must or expenses, while services as an employee perform, and it has a business relationship to the expenditure.
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employees adequately must take account of these costs within a reasonable period. Revenues have the date, time, location, quantity, and what the financial effort was to check.
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The employee must refund excess or remuneration back within a reasonable time. For example, if an employee 20 provided $ office supplies to buy, and the actual cost was $ 17, the employee must have the $ 3 To return to the business.
Source :. IRS
2) car mileage and travel expenses
The second main type of employee reimbursement for auto mileage and travel expenses , Technically, this is a type of financial reimbursement, however, there is to know some specifics.
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Standard Mileage Rates. Most companies use the standard IRS mileage rates when employees to reimburse for personal trips. For 2014, The standard mileage rate is 56 cents per mile driven for business miles. For 2015, the standard mileage rate is 57.5 cents per mile ( Source: IRS Mileage Rate ).
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Per Diem Travel. If employees are traveling on business, , the company can provide a fixed "Per Diem" allowance for accommodation (excluding taxes), meals and incidental travel expenses. The General Services Administration (GSA), the daily rates for the various regions within the US - ( Click to see prices here).
3) Medical Reimbursement
The third main type of medical reimbursement. There are a few different types of medical reimbursement plans and their use (and tax advantages) vary
Common types of medical reimbursement "plans", comprising of small businesses .:
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Health Savings accounts (HSAs) - individually own bank accounts of employees in the ownership, enables tax-free medical reimbursement.
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Arrangements health reimbursement (HRAs) - to reimburse Used medical expenses, tax-free, and combined usually with a high deductible health insurance. Plan
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health reimbursement plans (HRPs) -. Used to the individual health insurance premiums tax-free refund
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Health Flexible Spending Accounts (FSAs) - Health FSAs offer a tax-free way for employees to save for qualified medical expenses during a year. They are usually (but not always) employee-funded
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A taxpayer "scholarship" for health insurance -. to use A taxpayer stipend or allowance for employees on health .. insurance or medical expenses
Click here to read more about employee medical reimbursement plans
Tip: How to develop your employee reimbursement policies and procedures, document in your employee handbook. More HR basics, click here.
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