Topic Thread

Cell Phone Reimbursments

  • 1.  Cell Phone Reimbursments

    Posted 04-29-2019 16:01
    ​We currently reevaluating our cell phone policy.  Currently we  reimburse our employees 80% or $75 for using their personal cell phones. We do not reimburse equipment or insurance costs.  It is being proposed to increase reimbursement to 100% of the employees cost. Any feed back would be greatly appreciated.



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    Catherine Law
    The Miller Group
    Virginia Beach VA
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  • 2.  RE: Cell Phone Reimbursments

    Posted 04-30-2019 10:04
    This will increase your costs. Don't do it.

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    Paul Kloet
    CFO
    BIG Construction, LLC
    Chicago IL
    (312) 940-3767
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  • 3.  RE: Cell Phone Reimbursments

    Posted 04-30-2019 10:48

    We also do $75 per month for cell phone reimbursement

     

      1494259952684_unnamed.jpg

    Frank Carpenter

    Controller

    Morris, Inc.

    p: 949.333.7007

    c: 949.812.1145

    a: 4100 Birch Street, Suite # 500, Newport Beach, CA 92660

    w: www.morris-usa.com  e: frankc@morris-usa.com

     






  • 4.  RE: Cell Phone Reimbursments

    Posted 04-30-2019 12:03
    We reimburse a flat $75--no receipts to track--it's added on to paycheck so taxed. No equipment, no tracking, no figuring out how much time spent on personal calls verses business calls, etc.

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    Deborah Wolkoff CPC
    Controller
    Bering Straits Native Corporation
    Anchorage AK
    (907) 334-8329
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  • 5.  RE: Cell Phone Reimbursments

    Posted 04-30-2019 14:23
    ​We revamped our policy a few years ago and tried to make it simple.  We now give flat allowances and don't base it on employees actual cost.  This saved us from having to review the employees bill and having numerous levels of reimbursement set up in our system.  Employees roles vary so the allowance levels are based on those roles.

    Let me know if you want more details.

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    Ron Heemstra
    Controller
    Interstates
    Sioux Center IA
    (712) 722-1662
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  • 6.  RE: Cell Phone Reimbursments

    Posted 04-30-2019 14:32

    Do you add as taxable pay item?

    Currently it is not a taxable event to the employee with our current method.

     

    Catherine

     






  • 7.  RE: Cell Phone Reimbursments

    Posted 05-01-2019 07:53
    ​We do a flat fee, paid with the first payroll of the month, which is reimbursement for the previous month.  It is a non taxable reimbursement to the employee.  If there were any problems with reaching an employee due to the phone being shut off, or them running out of minutes, then we address those reimbursements as needed.

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    Jonica Poole
    Manager of Finance & Administration
    H.E. Callahan Construction Co.
    Auburn ME
    (207) 784-6927
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  • 8.  RE: Cell Phone Reimbursments

    Posted 05-01-2019 07:56
    We reimburse $75/month through payroll as a non-taxable reimbursement for cell phones and it is non-taxable per the IRS. Auto allowances are taxable.

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    Adam Stanard CPA
    Chief Financial Officer
    RW Dake Construction
    East Rochester NY
    (585) 381-2500
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  • 9.  RE: Cell Phone Reimbursments

    Posted 05-01-2019 08:08

    Do you require monthly bills from the employee to ensure than you are not paying more than their costs?

     






  • 10.  RE: Cell Phone Reimbursments

    Posted 7 days ago
    I would love to know more details - what type of range and general amount per employee category.

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    Jennifer Tindal CPA, CCIFP
    CFO
    MSS Solutions, LLC
    Charlotte NC
    (704) 943-1722
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  • 11.  RE: Cell Phone Reimbursments

    Posted 28 days ago

    A ​$75 flat amount sounds like fair and reasonable MAXIMUM amount in this cell phone age of easily available and accessible, low cost and no-contract-necessary carriers who provide unlimited, flat-rate, monthly usage plans.

    $50 would be perhaps a general MINIMUM amount.  For example, $50 would exceed an individual employee's cost if the employee is on Cricket's 2-Member Family, Unlimited Calling plan ($80). If the employee is on a 4-Member family calling plan ($100, or $25 per employee's portion) then the employee may even 'make out'.

    All considered, all reimbursements in the $50-$75 range should be sufficient and less costly than the total direct and indirect costs of employer-sponsored phones/accounts.



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    Michael Bittle
    Bookkeeper
    A&A Machinery Moving, Inc.
    Morrisville PA
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  • 12.  RE: Cell Phone Reimbursments

    Posted 28 days ago

    We still think the $75 amount is a value because you also have to consider the cost of fixing broken phones, getting stuck with two year contracts, and the management of a "fleet" of phones. There are a host of soft costs associated with the cell phones that are shifted to the employees with the allowance. Our goal is to minimize the things we have to invest management energy in. I agree that the $75 is a good deal for the employees, but for the above reasons we also fell it's a value to the company.

     

      1494259952684_unnamed.jpg

    Frank Carpenter

    Controller

    Morris, Inc.

    p: 949.333.7007

    c: 949.812.1145

    a: 4100 Birch Street, Suite # 500, Newport Beach, CA 92660

    w: www.morris-usa.com  e: frankc@morris-usa.com

     






  • 13.  RE: Cell Phone Reimbursments

    Posted 7 days ago
    We found the corporate plans very competitive and were able to get the cost per phone down to around 30 dollars a line so bringing them all in house saved us a fair amount of money. Given that we got our per line cost so low we only reimburse employees 30 dollars a month if they don't want to join our business plan - which is not taxed as income, its a business reimbursement.

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    Brian Tingey
    Controller/CFO
    Sure Steel Inc.
    South Weber UT
    (801) 917-5800
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