Taxable Employee Allowances 101: A Legal Perspective
Taxable Employee Allowances: A Legal Perspective I. Introduction Employee allowances are a common feature of modern compensation structures, often intended to reimburse specific expenses incurred by employees in the performance of their duties. However, not all allowances are treated equally under the law. A crucial distinction exists between taxable and non-taxable allowances, which carries significant implications for both employers and employees. From a legal standpoint, the classification of an allowance as taxable is governed by Read more…