Accountable Plans

Accountable plans that meet IRS requirements do not require employee expense reimbursements and allowances to be included in income on an employee's W-2 (nonaccountable plan reimbursements do; employees must file a 2106 with the IRS to claim the deductions)   An accountable plan must require employees to submit within a reasonable period of time. 

1.  an account of the expense in writing, including its business purpose; and

2.  excess reimbursements or unused allowances. 

An accountable plan requires a written policy of company procedures for expense advances and reimbursements and required employee documentation.  (Without this, a plan may be deemed nonaccountable.)

Some employers provide credit cards for specific expenses, such as travel, monitoring usage with reports from the card issuer.  For details, download IRS Pub. 463, at irs.gov