an arrangement that does not meet the requirements for an accountable plan
a reimbursement arrangement that does not meet at least one of the three rules listed under Accountable plans
a reimbursement arrangement that does not require you to account for, or prove, your business expenses to your employer or does not require you to return your employer's payments that are more than your proven expenses
A method of accounting for employee business expenses in which the entire advance or reasonable compensation reimbursement is taxable income to the employee and deductible by the employer. The employer must withhold income and payroll taxes on the amount paid and the advance or reimbursement must be reported on the employee's W-2 Form. If proper records are kept, the employee may claim an offsetting itemized deduction (subject to a 2 percent floor) for expenses. However, a 50 percent deductible limit applies on business-related entertainment or meals consumed on overnight business trips.
An employer's business expense reimbursement plan that does not meet the requirements regarding business connection, substantiation, and returning excess amounts. Payments made under the plan are included in employees. income.