It is the policy of the NMC, Inc. (NMC) to reimburse any employee, independent contractor, volunteer, grantee, joint appointee or certain other persons (“Covered Persons”) for approved NMC expenses paid on NMC’s behalf by such Covered Persons from their own personal funds while in pursuit of NMC business.
Reimbursement requests that satisfy ALL the IRS rules for an Accountable Plan listed below are considered non-taxable income and are paid in full via direct deposit or check:
The expenses must have a business connection (NMC “business purpose”).
This means the expenses must have been incurred while performing services as a Covered Person, and must benefit the NMC.
The expenses must be adequately accounted for within 60 days after they were paid or incurred.
Any excess reimbursement or allowance must be returned within 120 days after the expense was paid or incurred.
Reimbursement requests that do not satisfy ALL the IRS rules for an Accountable Plan listed above and exceed $600 per calendar year will be considered taxable income and paid via payroll and included in form W2 (employees) or reported to IRS on Form 1099 (non-employees; payees will receive their copies of Form 1099 by January 31).