Reimbursement Plan Definition
This is a type of plan that reimburses employees for work related expenses. These costs can include medical, travel, and entertainment costs. These plans exist so that companies can accurately reimburse employees for expenses as opposed to providing a broad allowance. Employees may not use reimbursement plans for personal expenses and must submit detailed notes of these costs and receipts. Examples of reimbursement plans include: accountable and non-accountable plans, de minimis fringe benefits, and travel allowances.