Sample Accountable Plan

It is the policy of the participation to reimburse whatsoever incumbent or employee for company set downs paid for by such respective(prenominal)s from their own ad hominem funds on the Companys behalf, in the pursuit of company avocation. It is the intent of this resolution to satisfy the Accountable Plan requirements under national revenue enhancement Code Section 61(c) and the substantiation requirements under Internal Revenue Code Section 274(d). Moreover, Section 1. 2-2(c)(1) of the Income Tax Regulations provides that a reimbursement or separate expense allowance arrangement for melody expenses paid or incurred by an employee are paid under an accountable plan if the arrangement meets the iii requirements of a business connection, substantiation, and returning amounts in surplus of expenses. Therefore, all reimbursements bequeath follow these simple guidelines 1) All individuals seeking reimbursement shall substantiate the expense by providing proof of payment in the form of an invoice to the company earlier to any reimbursement.Accordingly, employees are required to submit detailed expense reports describing each(prenominal) element of an expenditure with the necessary receipts within 30 geezerhood of returning from a business trip or incurring an cheer expense but no later than 60 days after(prenominal) it is paid or incurred. 2) All expenses must be determined to book a direct business connection relating to the operations of the Company, personal expenses pass on not be reimbursed. Personal expenses if reimbursed will be treated as W-2 wages to the employee. ) All reimbursements by the Corporation shall be made for the expended amounts, consistent to substantiated business expenses approved from employee expense reports or the proper invoices being submitted by the individual employee seeking reimbursement.The reimbursement relating to travel and entertainment expenses requires employees to describe each expense, the business pur pose it served, and, for entertainment expenses, the names and business relationship of the persons entertained in addition to the date of, place of, duration of, and participants in any business discussion that occurred directly before or after the entertainment. ) Reimbursements may be made prior to and in anticipation of the individual incurring the expense out of personal funds, however, upon incurring such expense, the individual will construct the invoice related to such expense and reimburse the company for any excess funds paid exceeding the invoice amount. In cases where the reimbursement of the excess funds is not paid back to the Company, the excess will be reported as W-2 wages pursuant to Section 1. 62-2(c)(3) of the Income Tax Regulations for that individual at the end of the accounting period.