The reimbursement expenses must be accurately categorized under the actual expenses incurred, as misclassification can lead to them being perceived as income. This misclassification may result in potential payroll tax complications. CORRECT: Report reimbursement by type 1) Reimbursements for business expenses Avoid mistakes when recording reimbursement payments. The reimbursed expenses may appear to be employee compensation and create a tax issue. These are company expenses i