Sample Internet and Email Policy for Employees . This list would include phones, phone service, internet service, computers and/or tablets, and any communications or home office expenses that are required. Expense reimbursement for office chair at home office. 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. The key to achieving a non-taxable reimbursement is to find out what the monthly expense of an employee is likely to be for each of the reimbursable categories. The purpose of this policy is to provide clear directive regarding the permission of reimbursements for cell phones and home internet. A Work from Home Policy may also be referred to as a Telecommuting Policy or Home-Based Work Policy. You can do this by: Making your company’s expense reimbursement policy clear and specific. Answers. Read on to learn more about this powerful law. Exceptions. California's Proposition 22 Passes - Implications for Other States? Will employees be reimbursed for broadband, Internet expense, or hotspots? In the short term, organizations whose employees suddenly were forced to work from home can make these payments tax-free without substantiating business use, under IRS Code Section 139. Form an ad hoc team of stakeholders and let them review and offer input into your policy. work-from-home due to COVID-19), the employer likely does not have an obligation to reimburse the employee for costs associated with such an arrangement — even in states that have laws requiring reimbursement of certain expenses (see below). As in the case of a car allowance versus a vehicle reimbursement, it is generally preferable to choose a non-taxable approach. Profile. Although, due to the rapid changes that go along with the pandemic, you may need to get an interim policy out quickly, do what you can to get buy-in from managers, approvers and the people who will have to communicate  and enforce the policy before distribution. Employee Home Internet and Phone Reimbursement California labor laws are complex, voluminous, and often confusing. Ne… 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. Last updated Tuesday, Nov. 5, 2019, at 9:34 a.m. 10/31/2019. We live in unprecedented times. INTERNET REIMBURSEMENT POLICY . Under federal law, there is no such requirement, as long as employees are making above the minimum wage when work expenses are deducted. Are you providing a spend allowance, or providing a standardized list of allowable purchases, brands and suppliers? 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. We had an employee, who works out of his home and travels, request reimbursement for a new office chair for his 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. A mileage reimbursement policy is usually not a standalone document, but instead it is part of a company’s corporate travel policies. 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." Furthermore, in January 2020 California's Assembly Bill 5 expanded the definition of "employee" under the labor code to include many contractors as well. Suite 625 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. Communicate the new or updated policy clearly and regularly to managers and employees, so everyone is on board with the changes. Policies: Cell Phones and Home Internet Reimbursement. 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. 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. Will your company pay a stipend or a percentage of this expense, as well? Susan Heathfield is an HR and management consultant with an MS degree. Consistent Internet access is a requirement for enrollment in the School. 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. 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. 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. 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 … Or if you face a situation in which some employees are working from home and some are on the road or in the office, depending on what state they work in, we have guidance on that set of challenges as well. 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. If that employee requires more bandwidth or a transition from a limited to an unlimited data plan, will you pay for that upgrade? 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. For example, employers are forced to tackle the challenge of connectivity for home workers, as nearly all home workers use telephones and the internet. That’s a massive change, by anybody’s standards. Here are some expense types, considerations, and tips to get you started: 1. "IBM is updating its home … With the COVID-19 pandemic forcing the majority of Americans to stay home, much of our workforce has gone remote. FP&A; Anonymous (Finance and Human Resources Manager) | Aug 6, 2015. BYOD, or bring your own device, policies are becoming more common in work environments. How does mileage reimbursement work? Define any potentially confusing jargon so that employees won’t misunderstand the rules. Carrier fees 2. 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. It is a framework within which to develop your own policy. Standard mileage reimbursement covers work-related car travel beyond an employee’s commute from home to the office and back. 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 … 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. Proper documentation and implementation are the keys to policy success. Designated employees who are required to perform these functions as part of their job duties will either be issued … Requirements . Will your organization reimburse a portion of the existing monthly plan? Work-From-Home-Jobs Search Go. 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. While some organizations supply a company phone, others opt to pay a mobile device stipend or reimburse some portion of an employee's personal phone bill under a "Bring Your Own Device" plan (BYOD). What happens to the new purchases if, and when, employees return to their offices? Under these policies, many employers are paying anywhere from $30 to $50 per month toward employee cell phone bills. The plans and speeds they chose were based on availability, costs and family needs, not an eight-hour, work-from-home scenario. 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. Will you supply or reimburse the purchase of a desk, an office chair, a monitor stand or lamp? SAP Concur is the world’s leading brand for travel, expense and invoice management solutions. 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?). 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). 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. I have attached Sample Cell Phone Reimbursement Policy. Mobile Communications and Home Computing Policy .....6 Additional Pay Request for Nontaxable Allowances .....6 Preferred Vendors for Mobile Communication Devices and Plans.....6 1. And now that many employees are using their home internet, the business portion of their internet bill is reimbursable, even if they would have had a home internet plan before. Denver, CO 80222 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? Employee Reimbursement Policy I. Keep employees in the loop on workplace policies. 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 … Pagers. Identify who these individuals are, and if you need to make any alterations to your existing policy going forward. Under the California labor code, section 2802, all business use of a personal cell phone must be reimbursed. 3. 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. This list would include phones, phone service, internet service, computers and/or tablets, and any communications or home office expenses that are required. We will also describe what are those elements in detail to let you understand better. Will you provide a spend allowance or enable employees to order one kind of chair or one type of desk from a specific supplier? 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. The plans and speeds they chose were based on availability, costs and family needs, not an eight-hour, work-from-home scenario. Dress Codes ; Human Resources Employment Law Sample Human Resources Policies and Procedures Use These Sample HR Policies and Procedures for Employee Management. 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. Employees must have cell phones with data plans, home internet access and a laptop or similar device in order to meet these demands. 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. Policy Subsection 11.1 Employee Reimbursement Policy III. 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. Overview. An employee who is working from home will also use more electricity, gas, and water. 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. Expenses associated with maintaining a home office could also be reimbursable since it is now required to have a physical space at home devoted to company work, until the COVID-19 restrictions are lifted. Today, you set the groundwork for the new world to come. Is this standard practice to allow the expense? Follow Twitter. Big Blue employees based out of home offices must now pay for their own broadband connections. 4. 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. 303-357-2550 | Privacy Policy |, Links to COVID-19 Business Assistance Programs in Every State, Navigating Your Business Through Turbulent Times: FAQ, How Companies Can Prepare for the Future of Business Travel, Keeping Employees Connected, Motivated and Supported In a Work-From-Home World, The “New Normal” of Business Travel: What to Expect and How to Get Ready. Otherwise, you end up losing 30-40% of the payment to taxes. © Copyright 2020 Concur Technologies, Inc. All rights reserved. Learn more about creating a viable expense policy with our expense policy template. These payments are referred to as mobile stipends. Full Bio. For more information on SAP Concur, and our automated, mobile travel, expense and invoice management solutions, visit Concur.com. Whatever the case, it is important to know the labor laws governing the states where your employees work and to ensure your organization's compliance with those laws. Len Green. Employment Law. What about office furniture, software updates, or the coffee and bottled water they used to get for free? Make it as easy as possible for employees to create and submit the expense reimbursement requests. Android, iPhone, etc. In the case of expenses covered by agreements with … 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. Policy Section 11.0 Business Functions II. 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. Employees. By. 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