Yes, you should generally send a W2 form for reimbursements to your company’s employees. Report substantiated employee business expense reimbursements in box 12 of each applicable Form W2, Wage and Tax Statement. Tax any unused expense amounts as wages. Send the W2 forms to employees so that certain ones can report excess reimbursements in line 1 of their Form 1040 or 1040-SR. Certain employees must report these wages, which appear in box 1 on a Form W2. The employees include anyone who is not a: Fee-basis state or local government official, a member of the Armed Forces reserves, a qualified performing artist, or an employee who has impairment-related work expenses.
Our W2/1099 Forms Filer software makes delivering forms to your employees quicker and less aggravating than manual reporting. Download our free demo software today to see how you can create encrypted PDF files to email reports to your employees directly from the software.