Definitions for "Accountable Plan"
a reimbursement or allowance arrangement between you and your employee that meets all three of the following rules
A method of accounting for employee business expenses in which employee reimbursements are not reported as employee income. Employee expenses must have a business connection, employees must adequately account for these expenses to the employer within a reasonable time, and employees must return any excess reimbursement or allowance within a reasonable time.
An accountable plan is any reimbursement or other expense allowance arrangement of an employer that meets all of the following requirements (therefore excluding it from gross w-2 earned income and tax): (1) it provides reimbursements advances or allowances including per diem and meals, to employees for any job related deductible business expense; (2) employees must be able to substantiate expenses covered in the plan; (3) employee must return any excess advances or payments.