The value of the cell phone was still to be included in the employee’s wages as a taxable fringe benefit. monthly cell phone allowance shall not exceed the cost of the employee’s monthly cell phone plan or the monthly charge for a shared plan containing the employee’s cell phone number. Employers exclude the value of the device from the employee's wages. They may be a great asset if used correctly (for productivity apps, calendars, business calls etc.) Some companies prefer not to play the nickel and dime game, and instead, just pay the entire amount. The good news is, the employer has access to all cell phone records and can control the associated plans. Why not lump cell phone use under the umbrella of expense accounts? If the employee has unlimited minutes or data, the employer is still required to pay "a reasonable percentage of the employee's cell phone bill.". Companies might decide they want to go with Apple's iOS, Google's Android, or some other option. Whatever expense reimbursement policy you craft, make sure the guidelines are abundantly clear.Â, Five ways to make expense reporting easier for employees, Balancing expense policy compliance and happy employees. Companies run the risk of employees damaging, losing, or having company phones stolen – this adds replacement costs to the equation. Under these policies, many employers are paying anywhere from $30 to $50 per month toward employee cell phone bills. Mobile management overhead 3. This is especially suitable for companies whose employees use their personal phones for work on a regular basis. Here we'll break down the newest laws in cell phone reimbursement and how to guarantee both you and your employees are getting a fair deal. For purpose… The cell phone policy of a company is merely a list of rules and guidelines that explain the dos and don’ts of using a cell phone in a work environment and during working hours. When not convincing people to automate their expense management, she loves to read, travel, and explore the world with her pup. With Fyle, you can manage all your employee cell phone reimbursements with ease.Â. If employees feel entitled to more than the fixed amount, many companies require them to submit proof. This figure varies depending on the company and the agreed-upon policy. Employers can mix and match two or three of these options to see what works best for them. What personal cell phone use is considered "work-related"? If you have the manpower, the most accurate way to, If you choose to provide company cell phones, be prepared to. In this situation, companies create a policy that requires staff to prove any work-related cell phone usage and expenses. How much should you reimburse each employee? A solution is to calculate the average time spent on work-related projects and then pay that portion of the employee's total cell phone bill. Effortless expense management for all business spends. Something went wrong while submitting the form. With constant updates and advancements in cell phone technology, it only makes sense that you create a cell phone policy that can adapt to  change. The biggest downside to this form of cell phone reimbursement is the grey area that exists between the fixed amount and what the employees feel they're entitled to. Our employee cell phone policyoutlines our guidelines for using cell phones at work. While these laws vary from state to state, California is leading the way in this growing trend. Even this can take precious time and energy better spent elsewhere. Employees are not authorized to use personal cell phones in place of company provided phones and radios. At the option of the employee and with appointing authority approval, providing appropriate funds have been budgeted, employee may opt to receive a monthly cell phone allowance of seventy dollars ($70.00) for use of a privately owned cell phone to conduct County business. If you decide to reimburse employees for their cell phone use, should you do so under an accountable or non-accountable plan? While this is an unpopular solution for many employers, for some, it's more about peace of mind. Companies must also consider cost when it comes to purchasing phones company-wide. You've provided a cell phone specifically for that purpose. Include Security Concerns, Accountability, And Permissible Use. If an employee needs to use the cell phone for personal use or for the emergency call, it is good to inform the company with relevant reasoning. Earned time, saved costs, improved productivity, happy employees - achieve it all with a single software. Schedule a demo today, and let's get started! Which of these options makes the most financial sense for your company? Policy brief & purpose Our employee cell phone policy outlines our guidelines for using cell phones at work. While BYOD reduces the acquisition costs for the employer, it comes at the cost of data security. One thing that still remains undetermined is what constitutes a reasonable percentage? We promise to send across some good stuff. Simply put, any company that does not follow the rules mentioned under the Accountable plan, comes under the non-accountable plan (aka Allowance plan). The employee must show that the cell phone and the accompanying service plan was used for a business purpose.Â. I have attached Sample Cell Phone Reimbursement Policy. The cell phone company policy may also be referred to as a no mobile phones at work policy or a bring your own device (BYOD) policy. Employees do not have to report the reimbursement as taxable income. 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