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mportman10
December 15, 2021
Question

Accountable plan

  • December 15, 2021
  • 1 reply
  • 0 views

I am switching to an S-corp in January. I just learned the term "accountable plan" today. I need some help understanding what this is going to look like logistically. What exactly is an "accountable plan"? 

 

I did look up how to reimburse under quickbooks payroll - so I'm good on that. Just not sure about the tracking part and how the reimbursements should be submitted/documented.

 

AND lastly, what expenses should be put under employee reimbursement versus S-corp expenses?

1 reply

Rustler
Rustler
January 22, 2022

A NON-accountable plan simply means the employee is paid by the company for his expenses, and that payment is addition income to him on his w-2. He then files a form 2106 to claim his expenses with his tax return.

 

An accountable plan means the employee gives over to the company his receipts, and the company pays him the total. That payment is NOT additional income.

See IRS Pub 463

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