{"id":154,"date":"2023-10-24T00:51:22","date_gmt":"2023-10-24T00:51:22","guid":{"rendered":"https:\/\/blog.suryapadhiea.com\/blog\/?p=154"},"modified":"2023-10-24T00:51:51","modified_gmt":"2023-10-24T00:51:51","slug":"accountable-plan-what-should-you-know","status":"publish","type":"post","link":"https:\/\/blog.suryapadhiea.com\/blog\/tax-tips\/accountable-plan-what-should-you-know\/","title":{"rendered":"Accountable Plan! What\u00a0 should you know?"},"content":{"rendered":"\n<p>An accountable plan is a way for S corporations to save taxes by reimbursing business expenses to their owners and employees without treating them as taxable income. Here are some key points about accountable plans:<\/p>\n\n\n\n<ul>\n<li><strong>Requirements<\/strong>: An accountable plan must have a&nbsp;<strong>business connection<\/strong>,&nbsp;<strong>adequate substantiation<\/strong>, and&nbsp;<strong>return of excess<\/strong>&nbsp;advances or reimbursements .<\/li>\n\n\n\n<li><strong>Benefits<\/strong>: An accountable plan can reduce the owner\u2019s&nbsp;<strong>individual income tax<\/strong>,&nbsp;<strong>Social Security tax<\/strong>, and&nbsp;<strong>Medicare tax<\/strong>&nbsp;by shifting the business expense deduction to the corporation .<\/li>\n\n\n\n<li><strong>Eligibility<\/strong>: An accountable plan can apply to any employee of the S corporation, including the owner. However, it does not apply to LLC members unless they elect to be taxed as an S corporation .<\/li>\n\n\n\n<li><strong>Expenses<\/strong>: An accountable plan can cover various employee-related expenses, such as&nbsp;<strong>travel<\/strong>,&nbsp;<strong>meals<\/strong>,&nbsp;<strong>cell phone<\/strong>,&nbsp;<strong>internet<\/strong>, and&nbsp;<strong>charitable donations<\/strong>. The expenses must have a clear business purpose and be properly documented .<\/li>\n\n\n\n<li><strong>Setup<\/strong>: An accountable plan is easy to set up and does not have to be in writing, but it is advisable to have a written policy that explains the rules and procedures for reimbursement .<\/li>\n<\/ul>\n\n\n\n<p><strong>Let us know if we can help you?<\/strong><\/p>\n\n\n\n<p>Contact Surya Padhi at Sure Financials for any questions and clarification. Surya Padhi is an expert who keeps current on tax law changes as well as a member of the National Association of Tax Professionals&nbsp;<a href=\"https:\/\/www.natptax.com\/\">National Association of Tax Professionals (NATP)<\/a>&nbsp;and&nbsp;&nbsp;<a href=\"https:\/\/www.naea.org\/\">New Homepage \u2013 National Association of Enrolled Agents (naea.org)<\/a>. Visit&nbsp;<a href=\"https:\/\/surefintaxsvs.com\/\">Welcome | Sure Financials &amp; Tax Services, LLC (surefintaxsvs.com)<\/a>&nbsp;for more information and contact us by calling +1908.955.0696.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>An accountable plan is a way for S corporations to save taxes by reimbursing business expenses to their owners and employees without treating them as taxable income. Here are some key points about accountable plans: Let us know if we can help you? Contact Surya Padhi at Sure Financials for any questions and clarification. Surya [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":155,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[12,9,7],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/posts\/154"}],"collection":[{"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/comments?post=154"}],"version-history":[{"count":2,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/posts\/154\/revisions"}],"predecessor-version":[{"id":157,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/posts\/154\/revisions\/157"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/media\/155"}],"wp:attachment":[{"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/media?parent=154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/categories?post=154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.suryapadhiea.com\/blog\/wp-json\/wp\/v2\/tags?post=154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}