Question

FedCo sent Jerry out of town on a temporary assignment. The amounts incurred by Jerry for food are not considered reimbursable under an accountable plan because Jerry would have had to spend money to eat even had he been at home. Why are the amounts incurred by Jerry for food not considered reimbursable under an accountable plan?

1) Because Jerry would have had to spend money to eat even had he been at home.
2) Because Jerry is not eligible for reimbursement for food expenses.
3) Because FedCo does not provide reimbursement for food expenses.
4) Because Jerry did not submit the necessary documentation for reimbursement.

Answer 1

Expenses for food are not considered reimbursable under an accountable plan if they would have been incurred regardless of the temporary assignment.

Step-by-step explanation:

The amounts incurred by Jerry for food are not considered reimbursable under an accountable plan because Jerry would have had to spend money to eat even had he been at home. In an accountable plan, the employer can reimburse employees for valid business expenses that are necessary for their work. However, expenses that would have been incurred regardless of the temporary assignment, such as food, are not considered reimbursable under this plan.