Answer:
1. By definition, a nonaccountable plan is one that does not meet the requirements of an accountable plan. Routinely these plans involve the employer providing a set amount, or an allowance, to the employee for travel. The employee does not account to the employer for the expenditure of these funds.
2. not accountable or answerable legally nonaccountable. 2 : not required to be accounted for nonaccountable expenses : not requiring something to be accounted for a nonaccountable expense plan.
3. A non-accountable plan is a reimbursement plan or policy which does not meet all the requirements for an accountable plan. Amounts paid under a non-accountable plan are income to the employee and must be included in wages with appropriate tax withholdings.
4. For accountable plans, the reimbursement or excess amount is excluded from income and is not subject to withholding taxes. In non-accountable plans, the reimbursement or excess amount is included in income and subject to withholding taxes.
5. Money provided to employees in a non-accountable plan is considered taxable income and should appear on an employee's W-2.
