Accountable Plan

An accountable plan is a method that businesses use to reimburse employees for certain expenses, like travel or work-related purchases, without counting these as taxable income. To qualify, the plan must meet specific IRS rules: employees must properly document their expenses, return any excess reimbursements, and the expenses must be related to work. This setup benefits both the employer and employee by saving on taxes and simplifying expense management. Essentially, an accountable plan ensures that reimbursements are handled fairly, transparently, and in accordance with tax laws.