Accountable Plan

An accountable plan is an expense reimbursement setup that meets IRS requirements that allows an employee's business expense reimbursement payments to be tax-free.

In order to be compliant, your setup must require employees to:

• Incur eligible expenses while performing their work.
• Document those expenses within a reasonable period.
• Return any excess payments within a reasonable period.

For mileage reimbursement specifically, documentation must include the date, destination, business purpose, and miles driven. Using a mileage tracker app can log all of those details at once automatically.