We also do $75 per month for cell phone reimbursement
a: 4100 Birch Street, Suite # 500, Newport Beach, CA 92660
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Do you add as taxable pay item?
Currently it is not a taxable event to the employee with our current method.
Do you require monthly bills from the employee to ensure than you are not paying more than their costs?
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.
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.
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