Originally Posted by
nocturnalmishin
Don't know for sure, but I was once told any payroll deduction for shortage of bank came out pre-tax. Does that make it simpler or more complicated?
Payroll deductions for travel bank shortage are not pre-tax. If they were, they would look like our 401K and Healthcare spending account deductions and have a "&" to the left of "DevBank" under Deductions on our earnings statement.
Originally Posted by
FDXLAG
I just assumed that it is a commuting expense because I don't live in domicile and is not deductible. Just like a commute to Memphis for training.
Lag, this isn't a deductibility question - I know a commute to domicile for a trip or training isn't a deductible business expense. Since we got the "yes/no" check box on the expense report, we're now required to report any commuting expenses Fedex pays on our behalf as taxable income.
If you check the "yes" box on a $200 airline ticket to MEM, you're going to end up paying $56 to the IRS (assuming 28% bracket). That $56 is going to be part of the money deducted from your paycheck under Fed Withholding. If you end up having to cover $100 of that expense with your own money via payroll deduction, then you've been over-charged on your taxes by $28.
I was just wondering if there was a way to handle this situation effectively during the submission of the expense report or are most people just taking care of the discrepancy during the filing process.