Payment vs. subtract deduction?

Question

our company reimburses for boots purchased.

they used to add amount to our paycheck, for the last 2 years they subtract the amount from our deductions WHY?

Answer 1

Mathematically it comes out the same.  Maybe they just changed computer systems or something.  It's more logical to show it as added to your pay but either way comes out.

Answer 2

Generally, if a company has a "accountable reimbursement plan", the reimbursed amount is NOT added to the employee's wages.

It sounds like your company does not have such as plan so the amount "reimbursed" is added to your wages.

Technically, this is the proper method of reimbursement plans for companies.

It also appears that they are treating the "reimbursed" amounts as "pre-tax" amounts so you do not get taxed.

But.. does this makes sense?? Your paying for an expense but the reimbursement is reducing your pay?? Basically, the company is paying you back with your salary. It's nontaxable but why take it out from your salary??

A company's "true" reimbursement plan would have an accountable plan in place, the employee submits the receipt for reimbursement and gets reimbursed 100% "without" any effect on employee's wages.

This is how it generally works!