Accountable Plan

Accountable Plan can be defined as the plan of reimbursing the employees of a business entity for the purpose of business expenses. In an accountable Plan the employee receives reimbursement from the business and the amount that is received in the form of reimbursement is not included in the income of the employee. It is the moral and the professional duty of the employee to calculate the expenses in an adequate method in such a way that there must be complete transparency regarding the reimbursement enjoyed by the employee and must return any excessive reimbursement to the business in the certain period of time.

Whenever an employee is on an official tour such as attending a business delegation on the behalf of organization, or going from geo location marketing from one place to other or travelling for the sake of business a number of expense may occur. All these expenses are reimbursed by the business in order to compensate the employees. These expenses may include travel, meal, lodging, entertainment, transportation and related expenses that are incurred in the favor of business or business entity. Nowadays almost all the business entities strictly scrutinize the expenses as in past these expenses were unjustified and were used as a tool to write off taxes.

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