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T&E Expenses for non-employee

We have an employee here on a stort term assignment who is still receiving pay from her uk based payroll. A T&E was submitted but rejected from our payroll system since she is not on our payroll.

Can a T&E be expensed through payroll for a UK paid employee? i suggested that they just cut her a check from A/P but I would like to know your thoughts.


  • If you have an "earnings" code that is completely nontaxable and nonreportable, don't see why not. But what's the reason someone (apparently) wants you to do it instead of A/P?
  • All other expenses come through payroll and they (AP) would have to list the person as a vendor in their system and they do not want to do that.

    If I am not issuing a W2 then I dont think they should use us to mitigate a process that they need to change.
  • I also think that it would leave us open for risk of having someone active in our payroll system that we are not paying earnings/taxes for.
  • I don't see why you should have to jump through hoops to put a person on your system if they aren't an employee. What's the difference between YOU having to set him up as an employee and THEM having to set him up as a vendor? :?

    But that's just me. :twisted:
  • And if the employee is an employee, then no 1099 needs to be issued for the reimbursement. If the employee is not an employee, then a 1099 would be issued - but if the only payments are for qualified expenses, then it is a wash on Sch C (expenses = NEC) and under an accountable plan, the documentation is there for the employee to use (I'm looking ahead to 2012 when this makes a difference). An alternative is to rebill the reimbursement to the UK unit - then it is a conduit situation and the 1099 would not be necessary.