2. Provided that nothing contained in this clause shall apply to the expenses on telephones including a mobile phone actually incurred on behalf of the employee by the employer. Employee Mobile Phone Policy & Procedure Policy . That way, you’ll be able to see the total bill amount and avoid reimbursing more than that. We’ll cover this in the next section. The goal of a corporate cell phone policy is to provide your workforce the mobile technology they need in a way that is compliant with IRS guidance, consistent, and fair to employees. But you don’t need to wait to craft your own consistent, compliant cell phone reimbursement policy. Mobile technology is taking over the world, and as businesses find innovative ways to leverage wearable technology and the Internet of Things, the line between personal and enterprise technology will continue to blur. How much should you reimburse each employee? This figure varies depending on the company and the agreed-upon policy. This means that high-use cellular bills probably exceed that amount comfortably. According Abacus' How to Create a Cell Phone Reimbursement Policy, they suggest "$50 for low business use and $75 for high business use." May also be called Employee Internet Policy, Company Internet Policy or Computer Usage Policy. This approach is attractive to companies with particular concerns over data security and compliance. This policy is IRS-compliant, scalable, and convenient for employees and finance admins. This article presents a tactical approach to creating a cell phone policy. Update: This article was originally written in 2017 and updated in 2020. For mobile phone and internet, for example, an employer must be able to show that the reimbursement reasonably related to needs of the business and was reasonably calculated not to exceed the expenses the employee actually incurred. Definitions Cell Phone – A cell phone, in this case, refers to a mobile phone up to and including features such as a keyboard or basic applications. Even if an employee uses their personal cell phone entirely for business, but pays only $73 a month, you’re still not allowed to reimburse them $75. Employees generally don’t like carrying two devices, and they always prefer using their own. The company then reimburses the initial cost of the cell phone and the service plan fees each month on receiving the associated receipts. (Psst… you may also find our complete guide to business policies helpful). Ultimately, we. The COPE cost is almost always higher than a reimbursement policy would be. provide mobile devices to employees, which is a policy known as “corporate-owned, personally enabled” technology, or COPE. Employee Internet Usage Policy. That meant call logs with highlighted line-items and inconsistent reimbursements month-to-month. The Illinois Wage Payment and Collection Act has been amended to require reimbursement of employees expenses, which may include higher ticket items like cellular phones, cellular data service fees, home computers and internet provider fees for employees who are expected to work remotely and more travel expenses. The policy applies to staff hired on or after September 1, 2014, and to existing staff who did not already have a Harvard phone or receive reimbursement or other subsidy for a personal mobile phone as of September 1, 2014. Back when cell phones were treated as listed property, companies had to be prepared to justify the level of reimbursement based on the percentage of business versus personal usage the phone had each month. Choosing an accountable plan means that you, the employer, are willing to be responsible for collecting and reporting extra documentation to the IRS in order to spare your employee from reporting their reimbursement as taxable income. Times have changed, and even if you’ve never had a BYOD or COPE policy before, now is the time to create one. Reimburse them at a lower tier and avoid this problem. CCHP is committed to keeping you updated on these important changes both federally and on the state level. Or do you want to provide company phones?” It’s time to look into whether to reimburse employees for part of their monthly cell phone bill or to implement a corporate cell phone program — BYOD or COPE. Designated employees who are required to perform these functions as part of their job duties will either be issued a Company-owned cell phone or will receive reasonable reimbursement for the value of the use of their personal cell phones in direct consequence of the discharge of their job duties. Secondly, select your perk spending categories. The law allows employees to sue their employer for reimbursement of the business use of their personal cell phone, internet, or even vehicle. Policy 1. It sounds simple, but a quick look at how businesses handle their mobile policies reveals a confusing array of approaches. These payments are referred to as mobile stipends. The best way to handle this is simply to not reimburse them in excess of what they’re owed. 1. When building your company's expense policy, make sure to review these considerations. $30-$100 per month for Internet access. Thanks to a few rule changes over the past few years. Labor Code section 2082 is extremely powerful. Reimburse for the actual voice and/or data fees incurred for business purposes, which requires employees to submit expense reports itemizing the costs of calls made for work purposes and the costs of data used for work supported with cell phone bills or other evidence of the costs (this is a time intensive process for employees); 5. Who Must Comply . This policy is to provide employees with a choice of the use of a personal mobile phone in lieu of organisational mobile phones. 2. of . Expense reimbursement: In a typical reimbursement policy, employees purchase a cell phone (from a list of company-approved devices) along with the service plan. do — and rest easy knowing your company’s mobile strategy isn’t being held up by tax concerns. New stories in your inbox, every other week. But to obtain this added control, companies have to manage big mobile contracts involving dozens — sometimes hundreds — of devices. How much should our cell phone reimburse policy actually reimburse employees? Title: Staff Mobile Phone Policy Page . It’s the same reason why record-keeping and reporting will be easy. 1. 2. of . Otherwise, you could be held liable. It’s because even 13 years after the debut of the iPhone, the IRS still hasn’t streamlined the process of reporting and deducting mobile technology costs. You just need them to be able to speak to clients and work remotely. 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