---
title: "Reimbursement"
description: "Reimbursement — Repaying an employee for a business cost they paid personally. Until paid it is owed to the employee, not to a vendor; whether it is tax-free depends on the employer's accountable plan."
canonical: "https://lopifi.com/glossary/reimbursement"
---

# Reimbursement

> Reimbursement — Repaying an employee for a business cost they paid personally. Until paid it is owed to the employee, not to a vendor; whether it is tax-free depends on the employer's accountable plan.

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

---

**What is reimbursement?** In accounting, reimbursement means repaying an employee for a business cost they paid personally. Until paid it is owed to the employee, not to a vendor; whether it is tax-free depends on the employer's accountable plan.

## Also known as

- Employee reimbursement

## Words this system refuses for it

- payroll
- refund (money returned to a payer)

- **Category:** Payables
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/lexicon)
- **Related:** accountable-plan, vendor