Employee Expense Reimbursements
Effective January 1, 2018 the itemized deduction for employee business expenses was repealed. But an IRC §62 and Reg. 1.62-2 fully accountable employee expense reimbursement plan can be fully deductible by the employer.
The plan may choose which employees to include and which to exclude from getting reimbursements. While wages may be somewhat lower once an employee no longer needs to pay these expenses out of his own pocket without reimbursement, those wages must not be dropped dollar-for-dollar depending on the amount of reimbursements made. Any reimbursements for equipment must result in the employer getting ownership of that equipment.