Q: We reimburse employees for the cost of their cellphones, as well as their wireless coverage. Is the reimbursement for the cost of the cellphone taxable?
A: No. If you require employees to purchase the phones, and to submit receipts, their reimbursements aren’t taxable. Key: Phones must be purchased for employment with your company. Employees can’t be reimbursed for phones they bought before they started working for you.
Q: Employees must use their personal cellphones for business. Their monthly reimbursements are based on our estimate of their business use. If reimbursements aren’t provided under an accountable plan—employees don’t document each business call—are the reimbursements taxable?
A: No. As long as you have a noncompensatory business purpose, employees’ business use of their cellphones is a working-condition
proper level of reimbursement.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/31832/cellphones-can-you-hear-me-now "