re: How Would You Handle? Employee spends too much on company card. But is top producer...

This is really a question for your CPA, but this is my 2 cents as a manager of a small business.

If the excess spending isn't impacting your bottom line, then you only expense out the per diem amount. Anything over is a bonus that he should pay income tax on. If you feel that he's spending far more than what should be a "bonus" you have a conversation with him and let him know that you'll need to deduct overages from his salary as personal expenses. Perhaps a lavish meal or two with clients can be justified, but there needs to be consent from you first.

Regardless, you need to have a friendly conversation. Perhaps he believes this high dollar meals are beneficial to the business. If the ends don't justify the means, then you nip that in the bud. After-all, it's business.

Something else to consider is that per diem rates and reimbursement policies can be abused both ways. In graduate school I floated nearly $1,000 a personal card for a work trip that took months for the accounting group to pick apart and settle. Just like a mileage reimbursement for use of a personal vehicle. Does 58 cents a mile really help a person recover fuel and major repairs/depreciation?