Reimbursement Plan

DEFINITION of 'Reimbursement Plan'

A generic term for several types of plans that reimburse employees for various types of work-related expenses. These expenses can include medical, auto, travel, meal and entertainment costs. Reimbursement plans are instituted by employers in order to allow them to pay for a more accurate amount of employee expenses incurred instead of having to provide a broad allowance or increase in compensation to cover them.

BREAKING DOWN 'Reimbursement Plan'

Reimbursement plans can take many forms, such as accountable and nonaccountable plans, de minimis fringe benefits, or automobile mileage and travel allowances. Employees cannot take personal deductions of any kind for expenses that are covered under a reimbursement plan. Employees must submit adequately detailed records of expenses via logs or receipts in order for employers to be able to deduct the reimbursements.

RELATED TERMS
  1. Accountable Plan

    A plan for reimbursing employees for business expenses. Under ...
  2. Health Reimbursement Account - ...

    Employer-funded plans that reimburse employees for incurred medical ...
  3. Cash Allowance

    An allowance that is paid out in cash, instead of being reimbursed ...
  4. After Reimbursement Expense Ratio

    The actual expense paid by mutual fund investors. The after reimbursement ...
  5. Non-Accountable Plan

    A system under which a business provides payments to its employees ...
  6. Before Reimbursement Expense Ratio

    The percentage of a fund's average net assets that is used to ...
Related Articles
  1. Personal Finance

    Tuition Reimbursement - An Employment Perk

    Boost your value in the job market at your employer's expense.
  2. 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.
  3. Professionals

    Fringe Benefits

    CFP Online Study Guide - Employee Benefits Planning - Fringe Benefits
  4. Professionals

    Other Health Savings Accounts

    CFP Study Guide - Health Reimbursement Arrangements and Archer Medical Savings Accounts.
  5. Taxes

    401(k) And Qualified Plans: Introduction

    By Denise ApplebyDuring retirement years, income for retirees usually comes from three primary sources: Social Security benefits The regular savings account of the retiree Retirement-plan ...
  6. Professionals

    Cafeteria Plans

    CFP Study Guide - Other Employee Benefits - Section 125 (Cafeteria) Plans
  7. 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.
  8. Taxes

    401(k) And Qualified Plans: Contributions

    By Denise ApplebyA qualified plan may be funded by both employer and employee contributions. Contributions are mandatory for some plans and discretionary for others, but the limits on employer ...
  9. Taxes

    401(k) And Qualified Plans: Conclusion

    By Denise ApplebyA qualified plan is established by an employer to provide retirement benefits for employees and their beneficiaries. Qualified plans can come in a few different flavors. Let's ...
  10. 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.
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. 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 >>
  3. 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 >>
  4. How are an employee's fringe benefits taxed?

    Discover how receiving fringe benefits can increase total compensation for employees and how it is important to understand ... Read Answer >>
  5. 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 >>
  6. What incentives does an employer have in offering fringe benefits?

    Learn how offering fringe benefits is a powerful business tool for employers to attract and retain quality employees while ... Read Answer >>
Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. 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 ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  5. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  6. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
Trading Center