buksoAccountable plan reimburse employees tax-free
Not tax advice. General bookkeeping information only, checked against the official sources linked below (Canada Revenue Agency, IRS, provincial governments and Justice Laws) on Oct 17, 2026. Rules change; check with your accountant before you file.
United States
Under an accountable plan, reimbursements to employees (or an owner-employee of a corporation) for business expenses are not wages: no withholding and no payroll tax. The expense must be business-related, proven within a reasonable time, and any excess returned. If a rule is not met, the payments become taxable wages.
Official source: irs.gov