---
title: "Accountable plan"
description: "Accountable plan — An employer reimbursement arrangement under which an employee's business expense reimbursements are not wages: the expense has a business connection, the employee adequately accounts for it within a reasonable time, and any excess is returned within a reasonable time. Fail one test and the reimbursement is taxable wages."
canonical: "https://lopifi.com/glossary/accountable-plan"
---

# Accountable plan

> Accountable plan — An employer reimbursement arrangement under which an employee's business expense reimbursements are not wages: the expense has a business connection, the employee adequately accounts for it within a reasonable time, and any excess is returned within a reasonable time. Fail one test and the reimbursement is taxable wages.

Source: https://lopifi.com/glossary/accountable-plan
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

---

**What is accountable plan?** In accounting, accountable plan means an employer reimbursement arrangement under which an employee's business expense reimbursements are not wages: the expense has a business connection, the employee adequately accounts for it within a reasonable time, and any excess is returned within a reasonable time. Fail one test and the reimbursement is taxable wages.

## Words this system refuses for it

- expense policy alone
- per diem (one kind of allowance)

- **Category:** Payroll
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** expense