Accountable plans save taxes for staffers and their nonprofit employers - Crawford Ellenbogen

If your not-for-profit doesn’t have an accountable plan, you generally must submit employee reimbursement payments on W-2 forms, withhold applicable taxes and pay the employer portion of employment taxes. Why not avoid these steps and save taxes for both staffers and your organization? Accountable plans can be informal. However, expenses covered must have a business connection, be “reasonable” and be properly documented. It’s important to keep reimbursement payments and other amounts separate and to record details about each expense. For help setting up a plan, contact us.