Classifications such as tool reimbursements and wages

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Motor vehicle service technicians usually must provide their own tools as part of their employment. These tools are the property of the technician, and service technicians generally receive an hourly wage. Some automobile dealerships split service technician wages into classifications such as tool reimbursements and wages. The result of this practice is that the worker's hours are taxed and the tool reimbursements are not because they are classified as a business expense. Page 109 Should the tool reimbursement be treated as income on the service technician's W-2? Why or why not? What are some implications of this practice?

Reference no: EM131251177

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