TAX WITHHOLDING AND REPORTING - LONG-TERM TRAVEL EXPENSES - 8572.2

Per the California Code of Regulations, Title 2, section 599.619, an agency/department may reimburse employees for expenses incurred on a long-term field assignment at a job site away from its headquarters location.

Based on federal and state tax law (refer to the Internal Revenue Service publication 463), long-term per diem (for continuous, indefinite field assignment anticipated to last more than one year) is subject to withholding of employment taxes (federal and state income, Social Security, and Medicare).

The employee must be notified in writing by their supervisor/manager, prior to starting the assignment that such reimbursements are subject to withholding. (Refer to the Payroll Procedures Manual section N141, et seq.)