I recently requested a reimbursement for office supplies. When I got the paycheck, the office supplies reimbursement is listed under "deductions." That doesn't seem right to me but our office manager assures me it was done correctly. Under "DEDUCTIONS" there are the following three line items:
Other Insurance (pre-tax)
$37.57
Medical Care FSA (pre-tax)
$45.00
Reimbursement- Office Supplies
$65.00
My summary of deductions lists $17.57 total (so it looks like they offset my pre-tax deductions with the reimbursement?) It seems like this would make the reimbursement function as taxable income.
Is this a correct/acceptable way to make a reimbursement?
