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Nonaccountable Plan

A nonaccountable plan is a reimbursement or expense allowance arrangement between an employer and an employee.  It is similar to an accountable plan's per diem reimbursement, except it does not meet one or more of the three rules listed under accountable plans. In addition, even if a truck driver's employer has an accountable plan, the following payments will be treated as being paid under a nonaccountable plan:

  • Excess reimbursements the trucking employee fails to return to his or her trucking employer, and

  • Reimbursement of nondeductible expenses related to the truck driver's trucking employer's business.

An arrangement that repays truckers for trucking-related employee business expenses by reducing the amount reported on their wages, salary, or other pay will be treated as a nonaccountable plan.

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