Template: Accountable Plans

An accountable plan is one under which you reimburse your employee for employment-related expenses. The employee is requiredto “adequately account” for the expenses. This means you must receive an expense record (account book, diary, expense statement, etc.) along with receipts and other documentation indicating the expense amount, time and place, business purpose, and business relationship to anyone else involved (e.g., a client, supplier, etc.). For the plan to qualify as an accountable plan, it must also require the employee to pay back any excess payments received. For example, say you pay $1,000 under an expense account arrangement and the employee [...]