Accountable Reimbursement Plan (expense reimbursement)
The language below may be used to create policy guidelines for an accountable expense reimbursement plan:
(see Tools option on this site for Reimbursement Form - Excel Spreadsheet)
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It is the policy of the company to reimburse employees for monies spent on business purposes. In order for the company to reimburse for these business expenses, ALL of the following conditions must be met:
1. It must be a verifiable business relationship related expense, and so noted on all receipts and mileage reports.
2. The expense must be reasonable in amount.
3. The expense must be documented by the amount, date, place, and business purpose (for employees only - in the case of entertainment expenses, the business relationship of the person(s) entertained must also be noted). This is the same amount of documentation that would be required to deduct this item as a business expense on a personal income tax return.
4. Only original itemized receipts are to be attached to the request for reimbursement.
5. It would be preferable that expenses be approved prior to being incurred by the employee that has budget oversight of the affected area, as any amounts incurred outside of budget constraints might not be reimbursable.
6. The request for reimbursement should be submitted no less frequently than monthly (preferably by the 15th of the following month of the expense) and in no event will an expense be reimbursed if submitted more that 60 days after incurred or paid.
7. Any business reimbursement that exceeds the actual amount of business expense must be returned to the church within 120 days after expenses are incurred or paid for and shall not be retained by the employee.
8. These requirements must be strictly adhered to in order for our reimbursement plan to qualify as an accountable plan under the applicable federal income tax regulations.
(see Tools option on this site for Reimbursement Form - Excel Spreadsheet)
_________________________________
It is the policy of the company to reimburse employees for monies spent on business purposes. In order for the company to reimburse for these business expenses, ALL of the following conditions must be met:
1. It must be a verifiable business relationship related expense, and so noted on all receipts and mileage reports.
2. The expense must be reasonable in amount.
3. The expense must be documented by the amount, date, place, and business purpose (for employees only - in the case of entertainment expenses, the business relationship of the person(s) entertained must also be noted). This is the same amount of documentation that would be required to deduct this item as a business expense on a personal income tax return.
4. Only original itemized receipts are to be attached to the request for reimbursement.
5. It would be preferable that expenses be approved prior to being incurred by the employee that has budget oversight of the affected area, as any amounts incurred outside of budget constraints might not be reimbursable.
6. The request for reimbursement should be submitted no less frequently than monthly (preferably by the 15th of the following month of the expense) and in no event will an expense be reimbursed if submitted more that 60 days after incurred or paid.
7. Any business reimbursement that exceeds the actual amount of business expense must be returned to the church within 120 days after expenses are incurred or paid for and shall not be retained by the employee.
8. These requirements must be strictly adhered to in order for our reimbursement plan to qualify as an accountable plan under the applicable federal income tax regulations.