What is a Business expense reimbursement plan?
A business expense reimbursement plan is a formal employer policy that repays employees for ordinary and necessary work-related costs. Under IRS rules, qualifying plans must require a business connection, adequate accounting within 60 days, and return of excess amounts within 120 days. When the plan meets all three tests, reimbursements are tax-free to the employee and deductible by the business. S Corporations commonly use these plans to reimburse shareholder-employees for Home office and Vehicle expenses.
Easily save clients thousands in taxes.
Scan client returns.
Uncover savings.
Export a professional tax plan.
.png){kind=small}