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Travel Allowance in lieu of mileage reimbursement


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Hello, This just came across my screen. My employer would like to give an employee a travel allowance in lieu of them needing to submit mileage reimbursement forms monthly. I know this is taxable, but would it be considered supplemental wages? If so, it will be separated from their normal wages, so would this be best to do at the Supplemental rate? Would this need to be coded for the W-2's? 

Thank you, John

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