Accountable Plan

DEFINITION of 'Accountable Plan'

A plan for reimbursing employees for business expenses. Under this plan, the reimbursement that the employee receives for the expenses is not included in his/her income. Employees are required to account adequately for expenses with records and return any excess reimbursement within a reasonable period of time.

BREAKING DOWN 'Accountable Plan'

Expenses can include such things as travel, meals, lodging, entertainment, transportation, or any other costs incurred for business purposes. In the past, companies' business expenses were less thoroughly scrutinized. This was partially due to unjustified expenses that were being used as tax write-offs.

RELATED TERMS
  1. Reimbursement Plan

    A generic term for several types of plans that reimburse employees ...
  2. Health Reimbursement Account - ...

    Employer-funded plans that reimburse employees for incurred medical ...
  3. After Reimbursement Expense Ratio

    The actual expense paid by mutual fund investors. The after reimbursement ...
  4. Before Reimbursement Expense Ratio

    The percentage of a fund's average net assets that is used to ...
  5. Reimbursable Out-Of-Pocket Costs

    Cash payments that an individual or company incurs on behalf ...
  6. Cash Allowance

    An allowance that is paid out in cash, instead of being reimbursed ...
Related Articles
  1. Personal Finance

    Tuition Reimbursement - An Employment Perk

    Boost your value in the job market at your employer's expense.
  2. Investing Basics

    ETF Gross vs. Net Expense Ratios: How They Differ

    If you're going to invest in ETFs, you should know the intricacies of expense ratios.
  3. Professionals

    Fringe Benefits

    CFP Online Study Guide - Employee Benefits Planning - Fringe Benefits
  4. Personal Finance

    Life Insurance Plans to Help Your Small Business Retain Employees

    How to use and design cash value life insurance plans as an incentive to help attract and retain key employees.
  5. Professionals

    Other Employee Benefits

    Other Employee Benefits
  6. Professionals

    Other Health Savings Accounts

    CFP Study Guide - Health Reimbursement Arrangements and Archer Medical Savings Accounts.
  7. Insurance

    How HRAs Work

    Health reimbursement arrangements (HRAs) can be a great way to help cover your healthcare costs. This guide has all the details.
  8. Professionals

    Employee Stock Options

    Employee Stock Options
  9. Professionals

    Cafeteria Plans

    CFP Study Guide - Other Employee Benefits - Section 125 (Cafeteria) Plans
  10. Retirement

    This Is Why Your Employer Should Offer a 401(k)

    Understand the unique benefits that come with a small business offering a retirement savings plan such as a 401(k) to current and future employees.
RELATED FAQS
  1. Are Flexible Spending Account (FSA) items tax deductible?

    Learn how contributions from a Flexible Spending Account (FSA) are not subject to taxation; however, the expenses paid from ... Read Answer >>
  2. How do waivers, reimbursements and recoupments affect a fund's expense ratio?

    Understand what waiver, reimbursement and recoupment agreements in relation to a mutual fund mean for the management fees ... Read Answer >>
  3. What are some examples of common fringe benefits?

    Learn how offering fringe benefits can be a strategic recruitment and retention tool for employers and drastically increase ... Read Answer >>
  4. What are the most common operating expenses for an online business?

    Learn about the common expenses of online businesses and find out about some of the tax implications of new business expenses ... Read Answer >>
  5. What is the difference between capital and operating expenses?

    Learn about the types of expenses that a company incurs. Understand the difference between capital and operating expenses, ... Read Answer >>
  6. What is the best retirement plan option for a physician with her own practice, employees ...

    It is very unlikely that you will find a qualified plan or an IRA-based plan that will allow the employer to exclude other ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center