Accounting & Bookkeeping & Small Business Forum

[geetha]

What account do you offset the personal amount of automobile expense to?

[baldeagleent]

You could do one of two things:
- set up an employee receivable.
- or offset the amount against any amounts payable to the employee.

Hope that helps.

[Richard Noot]

baldeagleent wrote: You could do one of two things:
- set up an employee receivable.
- or offset the amount against any amounts payable to the employee.

Hope that helps. I am not sure how you determined that an employee was being reimbursed and not the owner himself. However if it is indeed an employee that is being reimbursed then your response would be incorrect. Reimbursement of personal expenses to an employee are income to the employee and are considered taxable wages.

[Ahshucks]

It is easier to run the reimbursement through payroll effecting Box 1 of the W-2. The employee will then have to file form 2106 to deduct mileage expenses.