Accountable plans

First, you should learn the IRS rules. Here are some key things to know:

• Business purpose: expenses be reimbursed under an accountable plan and have a clear business purpose. This means the expenses must be directly related to the business operations and be necessary and ordinary for the industry. 
• Proof: you and your employees must provide proof of the costs. This means keeping receipts, bills, or other records of the costs. These records must show what the cost was for, the date paid, the amount paid, and why it was for the business. 
• Timely reporting: employees should report their costs to the employer quickly (within 30 days after the cost is paid). If you wait too long to report, you may not get the money back.
• Excess reimbursement: if employees get too much money back or get money early, they should return it to the employer, usually within 120 days after the cost is paid.
• No profits or losses: an accountable plan shouldn't result in a financial gain or loss for employees. You and your employees should be reimbursed for the exact amount spent, without making a profit from the reimbursement.   

Next, assess your business needs and determine which expenses are eligible for reimbursement. Write down the details of your plan, including what costs can be paid back, what proof is needed, and how to get the money back.

Here are some topics typically included in an accountable plan:  

1. Introduction: explain the purpose of the accountable plan and the types of expenses to be reimbursed. 
2. Eligible expenses: list the costs that will be paid back like travel, meals, and entertainment. Include rules about what will not be paid back.
3. Record-keeping requirements: explain what proof employees must keep to be reimbursed. Receipts or expense reports should include the date, amount, and business reason for each cost.
4. Reimbursement procedures: explain how employees should ask for money back including the forms they need to fill out and how long they have to turn in their requests.

Here's an example of an accountable plan:   

XYZ Company's Accountable Plan  

1. Written policy: XYZ Company has a plan that explains the rules for paying back the owner's and employees' costs. The plan is shared with all employees and explains what costs can be paid back, what proof is needed, and how to ask for the money back.
2. Business-related expenses: XYZ Company will pay employees back for costs that help them do their jobs including travel, food, hotels, transportation, and other costs related to work.
3. Expense reimbursement process: employees must provide a list of their costs within 30 days after they spent the money. The list should include the amount paid, the date paid, who it was paid to, and why it was for work. They should also attach any proof of the costs, such as receipts.
4. Timely reimbursement: XYZ Company will reimburse the employee for the documented expenses in a reasonable timeframe, usually within the next payroll cycle. The reimbursement will be based on the actual expenses incurred and supported by valid documentation. 
5. Return of excess reimbursements: if an employee receives money ahead of time or receives too much money, they must give the extra money back to XYZ Company in a set time to make sure the employee doesn't get more money than they spent.
6. Tax compliance: XYZ Company follows all tax laws when using the plan. This means the money paid back is not counted as part of the employee's pay, if the costs meet the IRS rules for work costs.