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PastorWeekly Lessons

Interactive training for ministry leaders
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Weekly Lessons, created and written by Richard R. Hammar, J.D., LL.M., CPA, give you a basic legal overview of essential topics based on staff or volunteer positions within a church.

Previous Lessons

Week of July 3

Offers in Compromise

This Week's LessonWeek of July 10

Accountable Expense Reimbursement Arrangements

Introduction

Our lesson this week examines the topic of "Accountable" Expense Reimbursement Arrangements. The Executive Summary provides a concise review of the key points. Before we get started, test your knowledge by completing the following quiz.

A church decides that it will reimburse business expenses that church employees incur in the course of their employment up to a specified amount. It adopts a policy allowing reimbursement of each such expense if the employee substantiates the amount, date, location, and business purpose of the expense. The church board assumes that this arrangement is accountable, and so the church treasurer does not report any of these reimbursements as taxable income on the employee's W-2 at the end of the year. Is the church reporting the reimbursements correctly?

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