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An accountable plan is a reimbursement arrangement that meets IRS rules so qualifying business expense reimbursements are not treated as taxable employee wages.
An accountable plan (sometimes called an accountable reimbursement plan) is an employer policy for reimbursing employees for deductible business expenses. Under IRS Publication 463 rules summarized on IRS.gov, reimbursements generally receive accountable-plan treatment when employees adequately account for expenses within a reasonable period of time and return any excess advances. If those rules are not met, reimbursements may be treated under a nonaccountable plan and included in wages. Nonprofits and churches often use accountable plans for travel, supplies, and ministry expenses, sometimes alongside per diem allowances for meals or lodging. The plan itself is a written policy and process‚ not a line on a tax form.
A compliant accountable plan helps nonprofits reimburse real ministry and program costs without accidentally creating taxable income or weak internal controls.
An accountable plan is your organization's policy; Aplos records the accounting impact of reimbursements. Record expense reimbursements via register import or journal entry (including options to track pending reimbursements as a liability before payment). Aplos also partners with tools such as Gusto and PEX in the broader product ecosystem for payroll and prepaid cards.
Generally, the arrangement must have a business connection, require adequate substantiation within a reasonable period, and require return of excess advances. See IRS Publication 463 and your CPA for application to your facts.
Per diem pays set daily allowances (often without itemized meal receipts). An accountable plan typically reimburses actual substantiated expenses. Some organizations use both for different cost types.
No. Your board/management adopts the policy. Aplos helps you record approved reimbursements to the correct accounts and funds.
Usually as expenses (and a reduction of cash or a clearing liability). Coding should follow your chart of accounts, funds, and any grant requirements.
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