It’s important to identify policy guidelines around these gift items, cost thresholds, regulatory issues, and any required pre-approvals upfront, so your employees stay connected to their customers, but also stay compliant during this unusual time. While we have in the past emphasized the importance of adhering to state reimbursement laws when it comes to vehicle expenses, we are now advising employers to find out what additional expenses they may need to reimburse now that so many workers are conducting their responsibilities from home. Employees Can’t Pay for the Cost of Doing Business. Proper documentation and implementation are the keys to policy success. Policy Section 11.0 Business Functions II. Is this standard practice to allow the expense? Requirements . With the COVID-19 pandemic forcing the majority of Americans to stay home, much of our workforce has gone remote. As we have reported over the past several years, California's labor code in Section 2802 requires employers to reimburse all "necessary expenditures and losses" incurred as a part of an employee's job responsibilities, including all "reasonable costs." Dress Codes ; Human Resources Employment Law Sample Human Resources Policies and Procedures Use These Sample HR Policies and Procedures for Employee Management. Otherwise, you end up losing 30-40% of the payment to taxes. Employees working from home may incur any number of expenses – home computers, printers, Internet service, WiFi connections, smartphones and even paper, pens and other office equipment. This figure varies depending on the company and the agreed-upon policy. Work-From-Home-Jobs Search Go. Objective This policy has been introduced to: […] Sample Internet and Email Policy for Employees . For more information on SAP Concur, and our automated, mobile travel, expense and invoice management solutions, visit Concur.com. As in the case of a car allowance versus a vehicle reimbursement, it is generally preferable to choose a non-taxable approach. A Work from Home Policy may also be referred to as a Telecommuting Policy or Home-Based Work Policy. Approved Mobile Communication Reimbursement Options .....7 a) Nontaxable Allowance for Employee-owned Device and Service Plan .....7 b) University-owned Device and Service Plan .....8 c) Taxable Allowance … How does mileage reimbursement work? Answers. Testing it out on employees. Under these policies, many employers are paying anywhere from $30 to $50 per month toward employee cell phone bills. 4. Under federal law, employers are generally not required to reimburse employees for their business related expenses. Sample Accountable Plan for Business Expense Reimbursement Purpose: This document can be used as a guide to draft an accountable plan for expense reimbursements However, it is merely an example, and it is not meant to be adopted or adapted without consulting appropriate legal counsel. 3. Consistent Internet access is a requirement for enrollment in the School. Today, you set the groundwork for the new world to come. It is recommended that departments pay for pagers directly, therefore eliminating the need for reimbursement of these expenses. Creating a reimbursement policy for out-of-pocket expenses is half the battle for a finance team. Find out if they’ve gotten questions on other types of expenses from their work-from-home employees that you may not have thought of and include policies on these. One such law is Labor Code section 2082. Last updated Tuesday, Nov. 5, 2019, at 9:34 a.m. 10/31/2019. Furthermore, in January 2020 California's Assembly Bill 5 expanded the definition of "employee" under the labor code to include many contractors as well. Now, individuals who normally come into an office and use the resources there to conduct business may be using their own laptops, Internet, and carving out office space in their apartments and homes. Only) _____ (“the Company”) recognizes that certain designated employees may occasionally be required to make business telephone calls and send and receive business e-mail and text messages. →. However, because the accounting procedures for non-taxable reimbursements can be tricky to manage, many employers just choose to pay a set monthly stipend or allowance, whether for vehicle expenses or mobile device expenses or home office expenses. The purpose of this policy is to provide clear directive regarding the permission of reimbursements for cell phones and home internet. The university will not reimburse employees incidental use of home internet/data access as it is assumed employees already have internet access and are not incurring additional cost due to university business use. In some cases the employer can even deduct employee reimbursements, but under normal circumstances a stipend or allowance to cover costs is taxable to both employee and employer unless they have an accounting procedure that substantiates business use of the entire payment. Under some state labor codes, that could require employers to take on additional reimbursement of work expenses. In its latest cost-cutting move, IBM plans to eliminate a program under which employees who work from a home office are allowed to claim Internet access as a business expense and obtain reimbursement from the company. Policy … The remote work expenses that must be covered by employers in states with strict reimbursement laws includes mostly communications devices and plans. Finally, make sure you take a look at how this additional policy impacts any existing policies you have for staff who were remote workers long before COVID-19 remote worker situations began. Define any potentially confusing jargon so that employees won’t misunderstand the rules. This list would include phones, phone service, internet service, computers and/or tablets, and any communications or home office expenses that are required. 303-357-2550 Overview. We had an employee, who works out of his home and travels, request reimbursement for a new office chair for his home office. I have attached Sample Cell Phone Reimbursement Policy. But there is also the issue of fairness to employees who may incur a new set of expenses as a result of working from home rather than from an office or from their vehicle. Account managers may want to send all of their customers “quarantine survival kits,” or other small tokens to lift their customers’ spirits, add some levity and keep your company’s name top of mind. Under the California labor code, section 2802, all business use of a personal cell phone must be reimbursed. Standard mileage reimbursement covers work-related car travel beyond an employee’s commute from home to the office and back. This Work from Home Policy template can be tailored to your company’s needs and is designed as a starting point for establishing employment policies on working from home. A vehicle expense reimbursement policy letter is created by an employer to ensure that their employees will be reminded of the company policy with regards to the reimbursement for expenses should an employee use a company vehicle for business or work purposes. Because they are now required to use their home internet for work purposes, it is covered under CA labor code 2802 and similar state labor codes. Len Green. © Copyright 2020 Concur Technologies, Inc. All rights reserved. So, they may want to get creative—have a virtual lunch meeting with an out-of-town customer, and have their favorite lunch delivered; send a pizza or toys to the customers’ kids, or dog biscuits for the pet they hear barking in the background. Under newly enacted section 9.5 of the Illinois Wage Payment and Collection Act (“Act”) (effective January 1, 2019), employers are obligated to reimburse employees for all necessary expenses incurred within the scope of their employment. Under the Tax Cuts and Jobs Act, individual taxpayers may no longer deduct unreimbursed business expenses. When Internet verification provided by a student’s parent/guardian, a portion of the costs associated with Internet access is provided by a supplement for students enrolled in the School each semester. 888-658-2982, Reimbursement of Employees Working from Home, even if they would have had a home internet plan before, may no longer deduct unreimbursed business expenses, a car allowance is treated as taxable income, whereas a vehicle reimbursement is non-taxable, guidance on that set of challenges as well, ← 3 Questions to Ask about Your Car Allowance or Mileage Reimbursement, How Should You Track Mileage for Work and Taxes? Forward the form to the accountant to track the status. Introduction The objective of this policy is to facilitate the Employees in their jobs by increasing communication within the organization and especially with the customers and to prevent them from the hassle of purchasing Sim Cards / Hand Sets. This means that employees have no way to recover new business expenses outside of an employer reimbursement or stipend. This is a new one for me. BYOD, or bring your own device, policies are becoming more common in work environments. How will you accommodate different space accommodations (someone working from an efficiency apartment in Brooklyn versus someone working from a designated office in a four-bedroom home in Atlanta?). Employers — not employees — bear the cost of doing business in … Employee Home Internet and Phone Reimbursement California labor laws are complex, voluminous, and often confusing. What happens to the new purchases if, and when, employees return to their offices? Employees must have cell phones with data plans, home internet access and a laptop or similar device in order to meet these demands. Full Bio. Reimbursement will be done by a supplemental pay stipend included in a qualified employee’s semi-monthly paycheck up to a maximum of $70.00 per month. Computer technology, peripherals and accessories: Working remotely requires the right mix of hardware and accessories—from laptops and printers to cameras, speakers, and headsets—in addition to those basic office supplies that, at the office, are a desk drawer away. Although the answers will be different for every company, one thing is certain: creating and publishing a “Business Continuity/Work from Home” expense policy will reduce confusion for employees, their managers, and your finance staff during a time when everything is challenging enough already. Follow Linkedin. Are you providing a spend allowance, or providing a standardized list of allowable purchases, brands and suppliers? FP&A; Anonymous (Finance and Human Resources Manager) | Aug 6, 2015. Office furniture: Some of your employees will already have a designated home office, while others will have to work from a bedroom, a barstool, or dining room table—a work environment that is not conducive to conducting business for weeks on end. However, when the national emergency is lifted, employers will need to pay close attention to the ordinary tax implications of these payments. Policy Statement GRCC shall reimburse employees for reasonable out-of-pocket expenses incurred while traveling on authorized College assignments or while engaged in authorized College business. Several other states have similar labor laws, including Illinois, Massachusetts, Iowa, New Hampshire, and South Dakota, so it is important for employers to know what the law requires in the jurisdictions where their employees live. Exceptions. It is a framework within which to develop your own policy. Reimbursement for Telecommunications/Telework Expenses Reimbursement for state use of personal cellular phone, smartphone, and internet services. Will your company pay a stipend or a percentage of this expense, as well? However, in the long run, if those employees continue to work at home, employers will need an IRS-accountable procedure to prove business use. What about office furniture, software updates, or the coffee and bottled water they used to get for free? This amount will differ from employee to employee, but in the case of mobile devices, home internet, and home office expenses it is often easier to figure out than vehicle expenses, since those expenses tend to be less variable and more tied to a set of monthly payment plans. Will you supply or reimburse the purchase of a desk, an office chair, a monitor stand or lamp? If a plan change requires a semi-annual/annual commitment, will you continue to pay for the upgrade for the duration, even after those employees return to work? We will also describe what are those elements in detail to let you understand better. While many companies have plans to return to the office, many others -- like Dell and Twitter -- have said work from home would be a permanent component of their workforce accommodation. Section 2802 applies to every kind of expense an employee might incur in performing a job and includes the cost of home internet service where work from home is required. California's Proposition 22 Passes - Implications for Other States? Make it as easy as possible for employees to create and submit the expense reimbursement requests. 2. Employees. Employees would have to attest to the amount of time they used the internet for personal and business use and submit a copy of the bill from their internet service provider (ISP). If you have been paying a car allowance or vehicle reimbursement but are not sure whether to continue doing so while employees work remotely, here is a helpful guide to that decision. Employee Reimbursement Policy I. We urge you to carefully review the language and provisions and revise them to conform to your organization's specific needs and circumstances and, if appropriate, seek the advice of competent legal counsel. Employment Law. Ne… Why Consolidating Spend Management Tech Enables Business Resiliency, Six Ways for Enterprises to Close Spend Loopholes with Tech, Procurement Executives: How to Plan for a Return to Travel. Sample Human Resource Policies; Policy Template Samples; This article will help you understand what is a Reimbursement Policy and what are the necessary elements it should generally compose of. Reimbursable expenses for remote work The remote work expenses that must be covered by employers in states with strict reimbursement laws includes mostly communications devices and plans. Carrier fees 2. Working from home has recently become the new normal, leaving office buildings empty and employees, at all levels, seeking out new ways to connect, collaborate and get their jobs done. While this change may have a long-term effect on commercial real estate, the near-term fallout affects an organization's work-from-home reimbursement policy, especially with regard to network technology … Company Cell Phone/Personal Cell Phone Reimbursement Policy (Designated . IBM Cuts Internet Reimbursement For Home Workers. Profile. Designated employees who are required to perform these functions as part of their job duties will either be issued … Read on to learn more about this powerful law. Take this as an opportunity to step back review the policies you have and adjust to position for what could be a very changed future. During the current crisis, under IRS Code Section 139 employers can make tax-free "qualified disaster payments" to cover home internet, home office, and phone expenses that arose directly from the COVID-19 pandemic. Suite 625 Communicate the new or updated policy clearly and regularly to managers and employees, so everyone is on board with the changes. "IBM is updating its home … Expense Reimbursement for Full and Partial Time Home Based Shared Services Employees With increased frequency, Shared Services organizations are giving employees the flexibility to work from home. This article addresses when and to what extent Labor Code § 2802 requires that employees be reimbursed for these sorts of remote-work expenses. Will you be supplying an “office in a box” or will employees be supplementing what they have with new purchases? Will employees be reimbursed for broadband, Internet expense, or hotspots? Mobile management overhead 3. Employers are also required to reimburse employees for vehicle expenses (i.e., mileage expense), the cost of providing a cellular telephone or “smartphone,” and any other costs the employee might incur. Pagers. Follow Twitter. We live in unprecedented times. Giving employees the opportunity to take pictures of the receipts and complete the request on their laptops or mobile devices will speed the process for them,  simplify things for your approvers and make  it easier for you to track these unexpected expenditures. Expense reimbursement for office chair at home office. As we have often pointed out with vehicle expense payments, a car allowance is treated as taxable income, whereas a vehicle reimbursement is non-taxable. Big Blue employees based out of home offices must now pay for their own broadband connections. The plans and speeds they chose were based on availability, costs and family needs, not an eight-hour, work-from-home scenario. hbspt.cta._relativeUrls=true;hbspt.cta.load(2511299, '5884aa5e-c686-4f87-957f-6cd0ce524edc', {}); 1660 S. Albion Street Internet, cellular plans, and utilities: Chances are, many of your employees have some sort of connectivity at home—be that broadband, cable or fiber optics, as well as a specific cellular plan with their carrier of choice. 3.3.2 Home Internet Monthly Stipend Reimbursement will be done by a supplemental pay stipend included in a qualified employee’s semi-monthly paycheck up to a maximum of $55.00 per month. Since most organizations had to pivot so quickly to respond to state and local government work-from-home mandates, very few had a chance to think through how the change would impact their current expense policy. By. An employee who is working from home will also use more electricity, gas, and water. You can do this by: Making your company’s expense reimbursement policy clear and specific. A "necessary” expense is defined in section 9.5 as all reasonable expenses that: (a) are required by the employer in the discharge of the employees’ duties; and (b) are primarily for the benefit … Work from Home Policy Sample. This list would include phones, phone service, internet service, computers and/or tablets, and any communications or home office expenses that are required. In a state like California with a strict labor code, employees could resort to taking their employers to court. If that employee requires more bandwidth or a transition from a limited to an unlimited data plan, will you pay for that upgrade? Voicemail, email, and internet usage assigned to an employee's computer or telephone extensions are solely for the purpose of conducting company business. 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