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Travel Reimbursement Frequently Asked Questions
- What is the purpose for the travel reimbursement forms?
- The forms are designed to document the "business" mileage driven by the nurse so that the travel allowance paid can be treated as nontaxable compensation. "Business" miles include the miles to and from the tax home to the assignment housing and the workday round trip from the assignment lodging to the client's worksite. As long as the form is timely completed and the nurse meets the three tax rules (1. has a tax home, 2. assignment, including extensions, is less than a year, 3. assignment is not within commuting distance) the reimbursement will be treated as a non-taxable reimbursement.
- When and where should the travel reimbursement forms be submitted?
- The Start Travel Reimbursement form should be submitted shortly after completing the trip from the tax home to the assignment housing. The End Travel Reimbursement form should be submitted shortly after returning home or driving directly to the next assignment. The forms must be submitted to the Boca Raton office (FAX 1-800-359-8480) to secure payment.
- When will the reimbursement payment be made?
- The allowance will be paid with the next regular paycheck if received by the payroll department on the Friday morning prior to your regular pay day.
- What if the nurse does not return to their tax home after the assignment, but instead drives directly to a new assignment?
- The nurse should submit the End Travel Reimbursement form claiming the mileage driven from the ending assignment to the new assignment. The nurse will not claim a Start Travel Reimbursement for the new assignment since she/he did not travel from her/his tax home to the new assignment. However, the computation mechanism for the new assignment End Travel Reimbursement provides an opportunity to receive the full round-trip travel cap amount for that new assignment.
- What is the maximum travel reimbursement amount? And, if the assignment distance is long enough will it all be paid with the Start Reimbursement?
- The travel cap limit will be predetermined for each assignment. The full reimbursement amount could be paid with the Start Reimbursement if the distance to the assignment is great enough to meet the minimum amount of miles. For example, if the travel cap is set at $400 and the nurse must travel 792 miles (792 x $.505 = $400)]. In that case an End Reimbursement form need not be submitted.
- Who can respond to the nurse's travel reimbursement questions?
- The recruiter or the payroll department should be able to respond to all such questions.
- What receipts or other documents should the nurse retain in support of the travel reimbursement?
- Since the reimbursement is solely based upon miles driven, there is no need to keep gasoline costs or other detailed receipts. The client billing records, time cards and other payroll records will provide business purpose and proximity support for the travel reimbursement form submitted.
Tax information contained in these documents is not intended to be used, and cannot be used, by any person as a basis for avoiding tax penalties that may be imposed by the IRS or any state. We recommend each taxpayer seek advice based on their circumstances from an independent tax advisor.
