09/17/2025
The answers you always wanted:
1. What are the rules for paying travel time?
When employees are away on business overnight, paid work time is only those travel periods that coincide with the employee’s regular working hours—even on a nonworking day. For example, if an employee normally works 9-5 M-F and on Saturday travels for work at any time between 9 and 5, that employee must be paid for those travel hours.
2. We garnished an employee to the limit. Is the limit the same for a second garnishment?
No. The Consumer Protection Act permits garnishing only a set amount of an employee’s wages, regardless of how many garnishments there are. You should see this in the paperwork.
3. Can we hire a 13-year-old nonfamily member?
No. The youngest a nonfamily member can be is 14, and there are limitations on that child’s hours and kind of work. [FLSA§13(c);W-H Reg. 29]
4. How do I withhold on our church’s minister?
Clergy are exempt from F**A and FITW. However, withhold FIT if the church and minister voluntarily agree. These wages are subject to self-employment tax unless Form 4361 has been filed with and approved by the IRS.
5. When must we deposit taxes withheld from taxable relocation reimbursements to our employees?
Deposit taxes under the same rules that apply to taxes withheld from regular wages.
6. Are disabled employees exempt from F**A?
No! The only exempt employees are children under 18 who work for parents in a sole proprietorship or partnership, certain employees of political subdivisions and religious orders, certain household employees, nonresident aliens, and a spouse employed by a spouse.
7. Can we dock exempt employees’ pay for absences caused by bad weather?
Yes—but it must be for any number of full days’ absence, not parts of days. Hourly employees must be paid only for time actually worked.
8. Is there a time limit on mileage reimbursements?
No. The law requires only that a record be kept. However, a company can set its own policy on submission of receipts for reimbursement, but the policy should be in writing.
9. Can we deduct from wages the cost of a lost cell phone?
Yes, but only if the employee was aware that the deduction could be made and signed an agreement agreeing to the deduction if the item was lost. Even with an agreement, an employer may not make any deduction from an employee’s pay that brings that employee’s wages below the minimum wage. [W-H Op. Ltr. 239, 10-1-73] Also, check state laws.
10. Where can I find sample expense reports?
For free expense report formats, google “Microsoft expense templates” and scroll to see all your options.
11. Are expense advances to employees taxable?
They may be. Any portion not returned or not substantiated for time, place and business purpose becomes wages subject to all taxes. Company policy should state this, and amounts not substantiated or unused portions not returned within 60 days may be deemed taxable wages by the IRS. Also, flat amounts advanced to employees for any purpose are taxable wages.
