IRS & FLSA Travel Pay Rules: How to Stay Compliant in 2026
Understand the complex rules surrounding employee travel pay, reimbursements, and FLSA compliance to confidently manage travel-related payroll while reducing costly compliance risks.
Overview
What you'll learn
Course Overview
The rules governing travel pay vary based on a number of factors, including whether workers are traveling on assignment, driving company vehicles or their own cars, etc.
And some of these factors, such as "commuting time", "waiting time", or "on-call time" are additionally governed by FLSA rules - and oft times are rife with employee fraud. It's enough to drive even experienced payroll managers bonkers!
Session Highlights: expand_more
By attending this training session, you and/or your team will learn:
- What is considered bona fide travel by the IRS
- The IRS rules for transportation expenses: mileage, car rental, airfare, hotel, meals, and entertainment
- Which employees are entitled to travel time pay
- How and when to compensate an employee for travel time away from a work site
- How to communicate the rate of pay and the requirements of travel
- The travel tracking necessary to compensate the employee properly
- What are the accountable plan rules as they pertain to travel expenses? How quickly must receipts be provided by an employee? How often do expense reports needs to be submitted?
- What is considered a wage or a taxable commute benefit?
- The IRS guidelines regarding commute costs
- "Breaks in service" allowing travel expenses to avoid reclassification as wages?
- The concepts of "co-locating" and "tax turtles" also will be addressed
- The "One-Year" rule: Is there such a thing as breaking residency and restarting the reimbursement clock?
- Typical problems that arise with travel and other FLSA issues, such as meals during travel
Why You Should Attend: expand_more
Employee travel pay is one of the most misunderstood areas of payroll compliance. Between IRS reimbursement rules, FLSA travel time requirements, taxable vs. non-taxable expenses, and state-specific considerations, even minor mistakes can result in payroll errors, employee disputes, tax liabilities, and compliance penalties.
This practical webinar will help payroll and HR professionals understand when travel time must be paid, how to properly reimburse employee expenses, and which travel-related payments are considered taxable wages. You'll gain clear guidance on accountable plans, mileage reimbursements, commuting rules, expense documentation, and common compliance pitfalls—giving you the confidence to process travel pay accurately while protecting your organization from unnecessary financial and legal risk.
Who Should Attend: expand_more
- Payroll Professionals
- Payroll Service Providers
- Tax Compliance Officers
- Enrolled Agents and Public Accountants
- Employee Benefits Administrators
- Officers and Managers with Payroll or Tax Compliance Oversight
- Company / Business Owners
- Managers/ Supervisors
- Public Agency Managers
- Audit and Compliance Personnel
Instructor
Mark Schwartz
Payroll Consultant
Mark Schwartz has over 15 years experience in state and federal payroll tax audits, collections, and payroll consulting. As an auditor, Mark prided himself on his ability to educate his auditees on state and federal payroll tax requirements. Whatever issues...
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