Q. I work for a nonprofit agency, and we plan to start using an agency credit card. But we also need a policy that covers who can use the card and when, plus some other things I haven’t thought of yet. What should the policy include? —M.M., Pennsylvania
A. If you decide to authorize employees to use company credit cards, your policy should also spell out whether and under what circumstances personal expenses can be charged to the card. For example, when employees pay for hotel rooms on business trips, they may use the card to pay for in-room movies or wine with room service. If your agency doesn’t cover such charges, specify when reimbursement is due or whether employees should pay for such items separately.
Also, check state wage laws before deducting such reimbursements from an employee’s paycheck. Such deductions may be illegal (and may also violate federal law) if they pull the employee’s pay below the minimum wage or reduce the proper overtime pay. Also, many states say payroll deductions can be made only if employees authorize them in writing.
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