An employee receives reimbursement from her employer at a specified rate per kilometre for business travel undertaken in her own vehicle. The employee maintains supporting proof of the expenditure, and the reimbursement relates exclusively to business travel.
Which treatment is most appropriate for the reimbursement described in the course material?

Question

An employee receives reimbursement from her employer at a specified rate per kilometre for business travel undertaken in her own vehicle. The employee maintains supporting proof of the expenditure, and the reimbursement relates exclusively to business travel. 
 Which treatment is most appropriate for the reimbursement described in the course material?

Accepted Answer

The reimbursement is excluded from gross income if the stated conditions are met.

Answer

The full reimbursement must be included in gross income because it is paid in cash.

Answer

Only 80% of the reimbursement is excluded from gross income.

Answer

The reimbursement is treated as a subsistence allowance.

Crowdly

An employee receives reimbursement from her employer at a specified rate per kil...

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