Advances or reimbursements for traveling or other employee business expenses are wages
if the employee does not or is not required to:
substantiate his/her expenses to the employer; and
return amounts in excess of the expenses substantiated to the employer.
EXAMPLE: Company A pays an employee $500 a month ($6,000 total for the year) for business expenses.
The employer does not require the employee to provide any proof of the expenses or
to return any amount not used for expenses. Therefore, $6,000 will be included as
wages on the employee's Form W-2.