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Accountable reimbursement plans are a valuable resource for
\nmost churches and nonprofits. The size of your organization does not matter! Even the smallest churches and nonprofits should set up an expense
\nreimbursement policy in order to legally reimburse their staff and volunteers.<\/p>\n
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<\/div>\nCoupon!<\/span><\/p>\n Here is a 10% discount code for all the ebooks, spreadsheets, and packages on this site:\u00a0<\/span><\/p>\n FCA<\/b><\/span><\/p>\n Note<\/b>: click on “PACKAGES<\/b>” in the top navigation bar for a list of all of the ebook and spreadsheet packages on this site!<\/span><\/p>\n<\/div>\n<\/div>\n <\/p>\n An accountable reimbursement plan is an employee reimbursement arrangement or method for reimbursing employees for legitimate business (church\/nonprofit) expenses.<\/em> <\/p>\n If set up correctly, reimbursed business expenses do not have to be treated as taxable income.<\/p>\n However, reimbursing expenses tax free could turn into a If there is no accountable reimbursement plan in place or a minister or church is audited and there is not The Policies and Procedures Package<\/a> includes an ebook on Receipts and Reimbursements that explores the management of receipts and supporting documents. <\/span><\/p>\n Additionally, it provides insights on establishing and managing an efficient accountable reimbursement policy.<\/span><\/p>\n Includes a sample of a resolution you can use to present to the board to set up and approve an accountable reimbursement plan.<\/span><\/p>\n .<\/p>\n<\/div>\n<\/div>\n <\/div>\n <\/p>\n This ebook is included in the Policies and Procedures Package<\/a>. However, you can purchase it by itself for only $7.95<\/b><\/span> by clicking the ADD TO CART button below!<\/span><\/p>\n <\/div>\n <\/p>\n The Receipts and Reimbursements ebook is also part of a larger “<\/span>Policies and Procedures<\/span><\/a>” Package” that is packed full of valuable information and for a limited time you can purchase all 5 ebooks and 8 policy templates for only $32.80<\/b><\/span><\/span><\/p>\n<\/div>\n<\/div>\n <\/div>\n <\/p>\n <\/div>\n \n<\/div>\n <\/p>\n Note that the rules for employee expense There are not any special rules for churches or nonprofits in \u00a0In order to be accountable, your reimbursement policy See more on setting up and maintaining an IRS compliant accountable reimbursement policy in Book 4 Receipts and Reimbursements in the Policies and Procedures series<\/a><\/p>\n NOTE:<\/b> Reimbursements CANNOT<\/b> be made by reducing the employee’s salary!<\/p>\n There are 3 requirements for an effective and “legal” accountable reimbursement plan.<\/p>\n They are:<\/p>\n The last 2 components must be handled within a “reasonable time”.<\/p>\n According to IRS Pub 463<\/a>, the definition of “reasonable time” “depends on the facts and circumstances of your situation. However, regardless of the facts and circumstances of your situation, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time”.<\/p>\n There are 2 methods that meet the “reasonable time” requirements. See more on the fixed date and periodic statement methods in Book 4 Receipts and Reimbursements ebook in the Policies and Procedures <\/a>series<\/p>\n <\/p>\n A set of 2 ebook packages that covers the following topics…<\/b><\/p>\n <\/div>\n \n<\/div>\n<\/div>\n <\/p>\n 1)<\/b><\/span> Include a budget for your accountable reimbursement plan that will \u201ccap\u201d the allowable amount for each staff member.<\/p>\n 2)<\/b><\/span> Include the proper wording in your policy to cover reimbursing your staff member directly for their eligible expenses and\/or paying for those expenses directly. Either method is acceptable and you can include both in your policy.<\/p>\n 3)<\/b><\/span> Properly substantiate expenses. The IRS requires the church or nonprofit to maintain good records and have actual receipts for any expense over $75 (you may use this figure or set a lower limit such as $25) and proper documentation to back up expenses.<\/p>\n The documentation must include:<\/p>\n 4)<\/b><\/span> Include a set time of when substantiation\/receipts must be provided to your organization in the wording of your policy.<\/p>\n 5)<\/b> Include wording authorizing advance payments.This can be especially beneficial for staff travel. Important…if an advance is given and exceeds the amount of business expenses substantiated, the staff person must return the excess within a “reasonable” time of the date incurred or paid.<\/p>\n 6)<\/b> Include wording that items, equipment, or property purchased by your church or nonprofit through the accountable reimbursement policy belongs to your organization. It would not pertain to small items such as small office supplies or personal religious items, such as robes. These items are used up or are so personal that they have little or no value to the church.<\/p>\n …give the left over funds in your accountable reimbursement plan to any staff person including the minister at the end of the year. It would null and void your whole policy and you would have to include all reimbursements for the year on a W-2 as income.<\/p>\n<\/div>\n<\/div>\n <\/div>\n \n<\/div>\n Get supporting documents such as receipts and mileage logs!<\/p>\n Properly file them!<\/p>\n Appoint someone to be in charge of administrating the Make sure they know what an The IRS requires the employer to keep good accounting Note:\u00a0Unsubstantiated<\/b> business expenses can be a big headache for everyone involved in the financial process of the church. See the effect of <\/span>unsubstantiated business expenses <\/span><\/a>in a church and how to prevent them.<\/span><\/p>\n Also see Book 4 Receipts and Reimbursements ebook in the Policies and Procedures Package<\/a> for more information on reimbursing meals on mileage!<\/span><\/p>\n \n<\/div>\n<\/div>\n Supporting documents and receipts are crucial in maintaining your accountable reimbursement plan. See the tips below for tracking those documents and receipts.<\/p>\n <\/p>\n Bookkeeping for Churches Package<\/span><\/b><\/span><\/p>\n A set of 4 ebook that covers the following topics…<\/b><\/p>\n <\/div>\n <\/p>\n <\/p>\n Besides supporting documents and receipts, churches and nonprofits organizations store many other important documents both physically and electronically. I am asked quite often how long they should keep those documents.\u00a0<\/p>\n My answer is it depends on whether it is a “permanent” or “temporary” document.<\/p>\n Permanent records include corporate documents, licenses, property records, financial statements, tax documents, and more and should be kept as long as the organization continues to exist.\u00a0<\/p>\n Temporary records vary from 3 to 7 years depending on the type of document and include financial ledgers, bank statements, employee records, tax records, contracts, and payroll documents. Note: check with your state laws for information on how long you should keep sales and property taxes, and employment-related records.\u00a0<\/p>\n See more on on how long to store records and documents in\u00a0Book 4 Receipts and Reimbursements ebook in the Policies and Procedures Package<\/a>.<\/p>\n![\"Accountable](\"https:\/\/www.freechurchaccounting.com\/images\/xreceiptswhite.jpg.pagespeed.ic.y-Adpyt0JD.jpg\" "\\"Accountable")
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\nnightmare for a church and their minister and\/or staff if not done properly. <\/p>\n
\nproper supporting documents backing up the reimbursement claims, the
\nreimbursements could be considered income for the minister or staff member.
\nThey would then owe penalties for not claiming the income\u2026and it snowballs from
\nthere.<\/p>\n
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<\/a><\/div>\n<\/div>\n<\/a>\n<\/div>\n<\/div>\nHow to Setup and Administer a Accountable Reimbursement Plan<\/h2>\n
\nreimbursements are the same for churches and nonprofits as they are for all
\nother businesses.<\/p>\n
\nrelation to employees\u2019 business expenses.<\/p>\n
\nshould comply with the following rules:<\/p>\n\n
3 Requirements:<\/h2>\n
\n
Church Accounting Package<\/span><\/h2>\n
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<\/a><\/div>\n6 Tips on Setting Up an Accountable Reimbursement Plan
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<\/div>\n<\/div>\nDo Not …<\/span><\/h2>\n
MORE Accountable Reimbursement Plan Tips:
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\naccountable reimbursement plan.<\/p>\n
\nappropriate business expense is and what is not and the time limit for
\nobtaining the supporting documents.<\/p>\n
\nrecords. Every reimbursed expense must include the following information (the 4Ws):<\/p>\n\n
\nexpense)?<\/li>\n<\/ul>\n8 Tips to Keep Track of Receipts<\/h2>\n
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<\/a><\/div>\n<\/div>\n<\/div>\n<\/a><\/div>\n<\/div>\n<\/div>\nRecords Retention Schedule<\/h2>\n
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