Does the US Internal Revenue Service consider reimbursement of out-of-pocket expenses to job interview candidates to be compensation for services provided by a vendor?
W9 triggered by reimbursement for out of pocket expenses to job interview candidate?
Answers
Yes, and the candidate needs to deduct HIS payment to the vendor when he files. But the real question is (at least for me) ......why subject the job candidate through this extra hoops/burden? You can just ask for the receipts (from the candidate) and expense it through the company. Better yet, let the company transact with the vendor and take the candidate out of the transaction/equation. But that is just me.
If you are reimbursing the candidate, and there is a documented reimbursement policy that is followed, then it does not trigger a 1099.
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Human Capital