how do i reimburse owners for job expenses that they paid with personal funds S-Corp

Answer

"Why is gas expense from a business trip not reimbursed to the employee?. I think they should be reimbursed if they pay out of their own pocket when it's for the business"

Here is how this works:

If you use a Company Vehicle for business, and pay costs personally while operating their car, the company can reimburse you for this.

If you use a Company Vehicle for personal, the company Taxes this as a taxable fringe benefit, through Payroll. If you already paid for fuel, there is a table that breaks out the rate into the taxable Value with and without Fuel.

If you use a Personal Vehicle for business, you turn in a Mileage report and they pay per the IRS mileage rates, and that is Not Taxable because it falls under the Accountable Plan rules.

If they pay you an allowance for business use of the personal vehicle, or higher than IRS Mileage rate, that is Taxable through payroll = throwing money at you.

No employer can repay your actual costs for the personal car, because they Cannot Be Determined. That's why you use Mileage Rates.



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