Clergy Accountable Plan
We are proud to introduce our Accountable Reimbursement Plan. New IRS rules for reimbursement plans became effective in 1989. Under our plan, all reimbursements are excluded from your taxable income in full to the extent up to the reimbursement and are not subject to federal tax, social security, and state tax.
Non-accountable and allowance plans do not meet the current IRS regulations and you are required to report these amounts as taxable income. These expenses are then treated as miscellaneous itemized deductions and are subject to two-percent of your adjusted gross income. Your expenses may produce no tax benefit unless your itemized deductions exceed the standard deduction.
Your church should establish a full accountable reimbursement policy. You are allowed to deduct all reimbursed expenses from your reportable income. Your reimbursement policy should include the following, but not limited to: office supplies, religious material, subscriptions and books, meals, entertainment, seminars, dues and memberships, library, educational expenses, camps, legal and professional services, gifts, auto, travel, etc. Any expenses you undergo on behalf of your service to the church qualify.
The new rules for qualified reimbursement arrangement plans would require that the reimbursements must not exceed the expenses incurred. All reimbursed expenses must be substantiated to the church with receipts or other documentation and all excess allowances must be returned to the church that are not used for business expenses.
In substantiating your expenses to the church, you must provide them receipts or documents indicating the amount, business use, number of business miles, time, date, business purpose and name.
A qualified reimbursement plan on a per diem or other fixed allowance basis that is similar in form to the allowance specified by the federal government is a permissible arrangement providing that the expenses are substantiated.
All reimbursed business expenses under the new qualifying reimbursement plan are excludable from taxable income in full to the extent of the reimbursement. Failure to meet these new rules would required you to report your reimbursed expenses as taxable income.
When you order your accountable reimbursement plan you will receive a Summary Plan Document with monthly expense reports and an Accountable Reimbursement Guide that will meet IRS guidelines.
Paying Online: You can order a Clergy Accountable Reimbursement Plan today using our secure online registration and payment system. Click-on "Buy Now" and simply fill out the registration form and submit it. Your order will be processed automatically.
Credit Cards: We accept Visa or MasterCard.
Satisfaction Guaranteed: If for any reason you are not satisfied with our plan document service, we will provide a refund. We pledge to provide excellent products and services or your money back.