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Are my employees’ tool expense reimbursement payments subject to state sales and use tax?

April 26, 2017expense PAYMENTS Reimbursement sales State Subject tax Tool

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Are my employees’ tool expense reimbursement payments subject to state sales and use tax?

1 Answer

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No, your employees have paid or complied with sales and use tax requirements when they purchased their tools, therefore, their expense reimbursements are not taxable nor do they require reporting to your state sales and use tax department.