Should you offer an accountable plan? Tax advantages for nonprofit staffers
Abstract: If a nonprofit’s employees submit expense reports, it can’t reimburse them tax-free — unless it has an accountable plan. With this accounting procedure in place, there’s no requirement to report reimbursed expenses as earnings, and employees don’t owe taxes on the amount. This article explains how to establish and administer an accountable plan and what reimbursement procedures must be followed.