An accountable expense reimbursement plan:

Question

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An accountable expense reimbursement plan requires the employee to substantiate expenses with receipts as well as to return any excess reimbursement to the employer. This type of plan is considered accountable because it ensures that the employee is only reimbursed for actual business expenses and that any excess reimbursement is returned, rather than being treated as additional income to the employee. This also benefits the employer by allowing them to deduct the reimbursed expenses as a business expense on their tax return.

An Accountable Expense Reimbursement Plan