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Key Change to the Standard: Expense Recovery Bonus (ERB) is the new term for what was formerly known as a taxable reimbursement. |
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Determination of taxable wages and taxes owed to governing authorities is ultimately the responsibility of each individual Reliant field worker in consultation with his or her tax advisor(s). Please note that although Reliant Reimbursements are processed in such a way that they are not included in the employee's taxable income, the employee bears ultimate responsibility for her/his income tax return(s), including the proper tax treatment of all payments received from Reliant, and should consult with her/his tax adviser as needed to determine the appropriate reporting and treatment of such payments. |
As with other taxable wages, estimated income taxes will be deducted from the employee's payroll for the item purchased and recovered using an ERB based on the employee's current tax settings. To help offset the amount of tax that will be deducted, an automatic 25% bonus will be added to all ERB submissions. For example, an ERB submission for a $100 expense would result in an ERB of $125 to account for the estimated taxes associated with this taxable bonus. Employees may opt out of the 25% bonus for estimated taxes by selecting to exclude the tax bonus in the expense submission.
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Key Change to the Standard: The bonus for estimated taxes has been increased to 25% (instead of the previous 20%). It is also now defaulted to automatically be added to the expense recovery bonus expense. In the past, the default was not to add the bonus, and field staff had to check the box to request that it be added. |
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| Determination of taxable wages and taxes owed to governing authorities is ultimately the responsibility of each individual Reliant field worker who bears ultimate responsibility for her/his income tax return(s) in consultation with his or her tax advisor(s). |
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