P.A.C.E. Expense Reimbursements

The Tax Advantages of Self-employment With Minimum Risk and Hassle

• P.A.C.E. Has an IRS-compliant Accountable Plan
  
  
  • Like all large corporations, P.A.C.E. has an IRS-compliant Accountable Plan to reimburse its employees for legitimate out-of-pocket business and medical expenses. The Accountable Plan includes virtually all of the write-offs enjoyed by self-employed independent contractors.
    
    
  • The P.A.C.E. accountable plan also includes additional expenses not usually allowed for independent contractors.
    
    
  • Reimbursements for allowed expenses are paid out of your division's revenues.
    
    
  • Reimbursed expenses are not considered income and are, therefore, exempt from taxes.
    
    
  • P.A.C.E. assumes all the responsibility for your expenses.
    
    
  • Advantage to you: The P.A.C.E. Accountable Plan dramatically increases your net pay, and reduces your risk of an IRS tax audit by a factor of ten when compared with self-employed independent professionals.

• Categories of Reimbursable Expenses
  
  
  • Your division of P.A.C.E. is able to reimburse you with tax-free dollars for qualified out-of-pocket expenses in the following categories:
    
    
    • Per diem allowance when working and living out-of-town.
      
      
    • Meals and incidental expenses (50% reimbursable).
      
      
    • Business promotion & marketing.
      
      
    • Travel (non-commute).
      
      
    • Communications (Internet, phone, data lines).
      
      
    • General supplies & miscellaneous expenses (Up to $750 per item -- Leaseback program available for larger purchases).
      
      
    • Training, tuition, certifications, licenses.
      
      
    • Conventions, workshops, seminars.
      
      
    • Office rental allowance (outside the home).
      
      
    • Out-of-pocket medical expenses (Deductibles, co-pays, and uncovered services and products when prescribed by a licensed medical professional).
      
      
    • Child care (additional requirements apply).
      
      
  • Advantage to you: As a P.A.C.E. Division Manager, you receive virtually all of the tax advantages enjoyed by self-employed independent professionals, plus others (such as per diem allowance) that are only available to employees.

   

• Fast and Easy Reimbursements
  
  
  • It's easy to claim your tax-free reimbursements for out-of-pocket expenses.
    
    
    • Enter your expenses online in the convenient automated form in the P.A.C.E. secure Members Site.
      
      
    • Mail original receipts and proof of payment to your P.A.C.E. Division Administrator for validation and approval.
      
      
  • There is no delay. You will receive your approved expense reimbursements the next time P.A.C.E. prepares your payroll.
    
    
  • Advantage to you: You receive your tax-free reimbursements immediately, with minimum effort. You don't have to wait until the end of the year to realize the tax-advantages of your independent lifestyle.

   

• Generous Upper Limits
  
  
  • The upper limit for all reimbursed expenses, not counting per diem payments, is 50% of year-to-date gross wages.
    
    
  • The upper limit for per diem payments is 100% of year-to-date gross wages.
    
    
  • The upper limit for out-of-pocket medical expenses, not counting private medical insurance premiums, is included within the 50% upper limit for all reimbursed expenses, and may not exceed $10,000 per year.
    
    
  • The upper limit for reimbursed, private, medical insurance premiums is the premium amount for comparable group insurance available through P.A.C.E.
    
    
  • Note: The upper limit for all reimbursed expenses and the upper limit for per diem payments are percentages of your year-to-date gross wages, not gross revenues. Gross wage is your variable salary, and represents the taxable portion of your division's gross revenues, less division expenses and reserve.
    
    
  • Advantage to you: The P.A.C.E. Accountable Plan leverages your buying power and the value of your medical insurance. Qualified out-of-pocket business and medical expenses cost approximately half as much when they are tax-free.

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Join Now!

• Contact P.A.C.E. today:
  
  
  • Phone: (925) 680-0200
    
    
  • E-mail: information@pacepros.com, or
    
    
  • Register online

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