If an Employee Receives a Reimbursement for Employee Business Expenses

question 42

True/False

If an employee receives a reimbursement for employee business expenses, the amount of the reimbursement is always excluded from gross income and the expenses are deductible as deductions for adjusted gross income.

---

Definitions:

Salary

Compensation received by an employee, usually as periodic payments, for performing their job responsibilities.

Bonuses

Additional compensation given to employees as an incentive or reward for their performance and contribution to the organization.

Incentive Plans

Programs designed to motivate and reward employees for achieving specific performance targets or business goals.

Demotivator

An aspect or condition that reduces motivation or enthusiasm.