DiscoverSmall Biz Ahead | Small Business | Starting a BusinessHow Much is Too Much For Meal and Travel Expenses?
How Much is Too Much For Meal and Travel Expenses?

How Much is Too Much For Meal and Travel Expenses?

Update: 2019-06-05
Share

Description

From train tickets to restaurant bills, your employees are bound to incur a number of expenses when they travel for business purposes. However, if they're not careful, these costs could add up and eventually put a substantial dent in your profits. So, how much should you, as a small business owner, allow your employees to spend on their travel and meal expenses? In episode # 153, Gene Marks and Elizabeth Larkin discuss the various factors you need to consider when calculating your employees' spending limits.





Executive Summary

1:18 —Today's Topic: How Much Can My Employees Spend on Travel Expenses for Business Trips?



1:49 —Under the newly reformed tax laws, meals are considered 50% deductible if they are work-related.



2:50 —Entertainment expenses are no longer eligible for tax deductions.



4:02 —Any travel or commuting expenses incurred on behalf of your small business are fully deductible as well.



5:00 —You should use the reimbursement limits set by the IRS as a guide when determining the how much your employees can spend on business-related travel and meals.



8:09 —Gene encourages small business owners to offer 401K's since both business owners and their employees can financially benefit from these retirement policies.

Links







Submit Your Question



Transcript

Elizabeth: Welcome back to the Small Biz Ahead podcast. I'm Elizabeth Larkin from The Hartford and I'm here with Gene Marks who is a small business owner and small business expert from the Marks Group.



Gene: Correct.



Elizabeth: Great.



Gene: Hello.



Elizabeth: Hello.



Gene: What are we talking about today Elizabeth?



Elizabeth: Today we're going to talk about meal and travel expenses.



Gene: And entertainment.



Elizabeth: And entertaining.



Gene: Yes.



Elizabeth: If you're a small business owner, you might be wondering how much leeway can I give my employees on that?



Gene: Yeah, I mean the rules have changed.



Elizabeth: They have.



Gene: Yes.



Elizabeth: After we hear from our sponsor, we'll be right back and we're going to answer Susan from Suffolk, Virginia's question about meal and travel expenses.

Our Sponsor

This podcast is brought to you by The Hartford. When the unexpected strikes, The Hartford strikes back for over 1 million small business customers with property, liability and worker's compensation insurance, check out The Hartford's small business insurance at TheHartford.com.

QUESTION: How Much is Too Much For Meal and Travel Expenses?

Elizabeth: And we're back. So here is Susan's question, again she's from Suffolk, Virginia. She doesn't tell us what kind of business she runs.



Gene: Okay.



Elizabeth: We'll make that up.



Gene: Okay.



Elizabeth: But here's her question,
Comments 
Download from Google Play
Download from App Store
00:00
00:00
x

0.5x

0.8x

1.0x

1.25x

1.5x

2.0x

3.0x

Sleep Timer

Off

End of Episode

5 Minutes

10 Minutes

15 Minutes

30 Minutes

45 Minutes

60 Minutes

120 Minutes

How Much is Too Much For Meal and Travel Expenses?

How Much is Too Much For Meal and Travel Expenses?

The Hartford