Originally Posted by
VegasGambler
It would not work. The employer doesn't know what kind of credit card I have. Maybe I use a 1% CB card. Or a 2% CB card. Or a card that earns 1 AA mile per dollar. Or a card that earns 1 VX mile per dollar. Or maybe I am in the middle of a promo and earning double miles. Or maybe I have an Amex Plat that earns 1 MR pt per dollar. Or maybe a PRG that earns 3 pts per dollar on those airline purchases. Or maybe I just use a normal credit card that doesn't earn any rewards. Or maybe I paid cash. Or wrote a check. Or used a debit card. Maybe my debit card earns miles, or maybe not.
All the employer sees is a receipt showing how much I paid. They don't know my method of payment, and they certainly don't know what agreement I have with my payment processor with respect to rewards, should I have one.
They don't know now, but if the Treasury Department were to write a regulation disallowing the employer's deduction for the reimbursement if it did not determine whether the employee used a reward card and if it did not adjust the employee's W-2 for any rewards he/she keeps, I am pretty sure your employer would require you to give them the full credit card statement prior to them reimbursing you.
If the author's policy suggestions were adopted, there would a lot more intrusiveness. That is one of the reason's I do not like his suggestions or agree with his assertions that the lack of taxing miles and points makes for a bad tax system.