How is compensation for distance accounted for in year-end taxes when it is not tied to a per-mile basis?
For instance, Trendsource is always good about listing three categories on their pay statements: contractor pay, reimbursed expenses and pre-authorized distance pay.
Does the PAD pay qualify as a reimbursed expense (that would not hold a tax liability) or as payment (which would). Also, I am assuming that if the PAD is a reimbursed expense, that I could not also claim the mileage for that trip as an expense.
Tax gurus, your input is welcome.
For instance, Trendsource is always good about listing three categories on their pay statements: contractor pay, reimbursed expenses and pre-authorized distance pay.
Does the PAD pay qualify as a reimbursed expense (that would not hold a tax liability) or as payment (which would). Also, I am assuming that if the PAD is a reimbursed expense, that I could not also claim the mileage for that trip as an expense.
Tax gurus, your input is welcome.