Question

Anthony is a temporary employee who was sent out of state on an assignment. If accountable plan requirements are met, the per diem allowance provided to Anthony will not be considered taxable wages. True or False?

1) True
2) False

Answer 1

If accountable plan requirements are met, the per diem allowance provided to Anthony will not be considered taxable wages.

Step-by-step explanation:

The correct answer is True. If accountable plan requirements are met, the per diem allowance provided to Anthony will not be considered taxable wages. An accountable plan is a system that employers use to reimburse employees for business expenses. To qualify as an accountable plan, the employer must require employees to substantiate expenses, return any excess amounts, and only provide reimbursements for allowable business expenses.