Employee Expense Reimbursement and Allowances
Each and every day, employees are incurring expenses on behalf of their employers. Over any given year, the total of these expenditures and the associated sales tax obligations can be significant. Properly accounting for these transactions can be a challenge, as the documentation supporting these purchases is often lacking and the myriad of tax rules can be difficult to navigate. At the same time, an employer usually wants to process these reimbursements as quickly as possible, in order to fully compensate their employees for undertaking purchases on behalf of the company. With all of this in mind, it is not unusual for a business to miss opportunities or create exposure in relation to the recovery of tax on these expenses.
Join Gail Harper and Paulette Mellace of Ryan ULC for a detailed, insightful analysis of the GST/HST and QST consequences of employee reimbursements and allowances, with a particular emphasis on the documentary requirements and specific restrictions for these expenses. Practical advice will be provided on how to take advantage of the administrative policies in place to assist organizations that may be struggling to comply with these rules.
Course contents include:
- the legislative authority allowing organizations to recover tax on employee reimbursements;
- the special documentary requirements for the recovery of tax on these transactions;
- the unique restrictions that apply to many expenses which are typically reimbursed to employees, including the recapture of input tax credits requirements in Ontario and Prince Edward Island, and the input tax refund restrictions for large businesses in Quebec;
- the role that simplified factors can play in streamlining the processing of expense reports and easing the administrative burden placed on taxpayers;
- a clarification of the QST rules that may impact the processing of expense reports in Quebec;
- the benefits and pitfalls in relation to automating the reimbursement process; and
- a discussion on what businesses can expect when these transactions are reviewed under audit.
This webinar will be of most interest to accountants, tax practitioners, payroll administrators and/or other persons involved in the review or administration of employee expense reimbursements and allowances. It will also benefit practitioners in accounting and law firms and other practitioners who should be aware of the tax issues that may impact their clients' employee expense administration.
Webinar Length: 2 hours
Professional Development Credits
Wolters Kluwer Canada professional development programs are designed to meet the continuing education requirements of a variety of professional associations. These requirements do vary by association and region. Please consult your provincial association to ensure this webinar meets the continuing professional development standards for your specific situation.
This webinar is being presented by Gail Harper and Paulette Mellace of Ryan ULC:
Gail Harper, CPA, CMA, Senior Tax Advisor
Gail is a Certified Profession Accountant and a Senior Tax Advisor in the Client Support Services area at Ryan, North America's largest independent commodity tax consulting firm. Throughout her career, Gail has held positions of increasing responsibility in the private sector for service, financial service and manufacturing companies. Gail advises clients throughout North America on all aspects of federal and provincial sales taxes in Canada.
Paulette Mellace, CPA, CGA, Senior Tax Advisor
Paulette is a Certified Professional Accountant and a Senior Tax Advisor with Client Support Services at Ryan, North America's largest independent commodity tax consulting firm. Throughout her career, Paulette has held positions of increasing responsibility in the private sector for manufacturing and distribution companies, where she worked in the areas of operational accounting, compliance and sales tax. Paulette advises clients throughout North America on all aspects of federal and provincial sales taxes in Canada.