THIS MORNING I ENCOUNTER A QUESTION FROM ONE OF MY CLIENTS WITH REGARDS TO AUTO REIMBURSEMENT. IN THE "EMPLOYER'S TAX GUIDE CIRCULAR E," PAGE 9 IT STATES THAT YOU MAY REIMBURSE YOUR EMPLOYEES BY TRAVEL, MILES OR SOME OTHER FIXED ALLOWANCE. IN ANOTHER GUIDE IT STATES THAT YOU MUST REIMBURSE EMPLOYEES. IS YOUR GUIDE CORRECT? IN ADDITION, IF THE EMPLOYEE IS AT A CLIENT'S OFFICE AND DRIVES HOME RATHER THAN BACK TO THEIR WORK OFFICE, IS THIS CONSIDERED TO BE AUTO REIMBURSEMENT? SHOULD THEY ALSO BE PAID FOR THEIR TIME DRIVING?

-- TINA MARIE (tinag@wrfreytaxman.com), December 01, 2003