Travel and entertainment costs represent a large chunk of the budget for most businesses. In fact, they are the second largest business expense, just behind payroll.
You would think that businesses would take the management of these expenses very seriously, given that they spend so much money on them but, surprisingly, not all of them do. Most businesses still manage their reimbursable expenses using antiquated methods like pen and paper or spreadsheets.
The IRS standard mileage rate is intended to cover all the costs associated with operating a vehicle for business purposes. This includes wear and tear on the car as well as gas expenses.
You already know you can use Timesheets.com to track attendance and time on projects. You probably also know that you can use it to track commission, mileage, and other employee accrued expenses. But did you know that you can use your Timesheets account to track business expenses for taxes?
In this post I am going to show you how to do it, but first let’s take a look at what qualifies.
Most employees make an hourly wage and are paid based on the number of hours they work. That’s typical for most businesses. However, some employees are paid based on the job they do regardless of how long it takes them to finish it. Still others are paid based on a daily rate.
As an employer, you should have a choice about how to pay your employees – by the hour or by the job – and should not be restricted by your time tracking software.
And with Timesheets.com you do have a choice.
When we think of bonuses, we often think of end of year, maybe Christmas. But bonuses can come at any time and in forms other than cash.
For example, bonuses can be given for a job well done at the completion of a project and the bonus doesn’t have to be cash either.
- Gift cards
- Travel vouchers
- Stock options.
While cash is usually the most sought after option, many employees realize that cash is taxed. If they’re planning to use the bonus for savings or entertainment anyway then other options might be better.
Non-cash bonuses are not just good for the employee but employers can usually get gift and travel vouchers at a reduced bulk rate. This helps employers save money on bonuses so they can give out more of them.