Percentage-based reimbursement

Percentage-based reimbursement

All the "employees" are part owners so are not the typical employee. We have many expenses that do not receive 100% of the expense amount reimbursed. This is because we only reimburse based on the stated "Business Use Allocation" or "Business Use Percentage". A common one is business meals. The IRS says these types of expenses are only 50% deductible so if someone submitted a meal for $100. They would only get reimbursed for $50. Similarly with other expenses that are only partially used for business purposes like they paid for automobile maintenance but only drove their vehicle for business purposes 75% of the time that expense period. Therefore, a $100 maintenance bill would only be reimbursed for $75.


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