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This is my first year as LLC (taxed as S-corp)

This is work from home, so I am planning to file for reimbursement for my LLC for the "part" of house EMI and other expenses etc., reading over the internet, I came across this paychex article, which says that:

An accountable plan is a reimbursement arrangement that requires employees to substantiate their business-related expenses to the company within a reasonable timeframe (no more than 60 days from the date of the expense).

I was under impression that, because I am the only employee/owner in the LLC, I can document the expenses under the "accountable plan" at year and reimburse the expense (Based on the amount left after the salaries). If the above article is true, does this mean, I can only reimburse for 2 months?

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    Is this in the United States? Please add a country tag. Commented Dec 2, 2022 at 17:06
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    I'm assuming this is US based on LLC taxed as S-Corp, but I may not be familiar that similar terms exist elsewhere?
    – littleadv
    Commented Dec 2, 2022 at 17:26
  • Yes, US based S-Corp.
    – kosa
    Commented Dec 2, 2022 at 18:55

1 Answer 1

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If the above article is true, does this mean, I can only reimburse for 2 months?

Within 2 months.

(no more than 60 days from the date of the expense)

Say you pay your business phone line on October 1st. You need to submit the reimbursement request within 60 days, so before Dec. 1st. If you're paying the bill monthly, each payment should be reimbursed within 60 days.

The fact that you happen to be the owner doesn't change the requirements for accountable plans.

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  • It seems the "request" with "substantiation" should be submitted before "established" date (typically 60 days). But, the reimbursement (like paying back money for the expenses) can happen anytime, no time limit. You mentioned "payment should be reimbursed within 60 days" -> 60 days from the "request" submitted date or "actual expense date"?
    – kosa
    Commented Dec 7, 2022 at 0:09
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    @kosa When I say "reimbursed" I mean submitted to reimbursement. The act of paying out the money should be ASAP once the reimbursement request is submitted. By holding off payments arbitrarily you may be violating labor laws (even if you're the owner employee), and depending on how your accounting works the money may be considered as paid once the claim is made regardless of when it actually leaves your bank account (check with your accountant).
    – littleadv
    Commented Dec 7, 2022 at 0:12
  • Thank you! this may be follow up question. I have a follow up question, which I think is more valid as separate question rather than comment here. Let me post it as separate.
    – kosa
    Commented Dec 7, 2022 at 16:57

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