What this is

An accountable plan allows the business to reimburse owners for business expenses tax‑free, instead of paying taxable wages.

What can be reimbursed:

• Mileage
• Home office expenses
• Cell phone
• Internet
• Supplies
• Meals while traveling
• Out‑of‑pocket business purchases

Why it saves taxes

Reimbursements:

• Are tax‑deductible to the business
• Are not taxable income to the owner
• Reduce the need for higher wages

Requirements

• Written plan document
• Expense documentation
• Regular reimbursement process