Expense Reimbursement Guidelines
How do you distinguish expense reimbursements from disguised compensation? Establish an accountable plan! Accountable vs. Nonaccountable If a company’s arrangement meets the accountable plan requirements, expense reimbursements to employees are 100% deductible by the company (50% for most meals and entertainment). Also, the reimbursements are excluded from the employees’ taxable income and are not subject [...]
