Expense Reimbursements: Are you paying your employees correctly?
Traditionally, it has been easy for a business owner to determine what expenses need to be reimbursed to an employee. The most common expenses are for mileage when an employee uses their personal vehicle for business purposes and reimbursement for cell phone usage when the employee uses their personal cell phone for business purposes. With many employees working from home now, it is imperative for employers to ensure that they are reimbursing employees for expenses that are incurred from using their home as their “office”, such as the employee’s home internet cost, their electricity usage and their home telephone usage for business purposes.
In order to protect yourself against an employee reimbursement lawsuit, please follow these suggestions:
- Assess for each employee what type of personal expenditures the employee may be making while conducting work for the employer.
- Determine what percentage of usage from the employee’s cell phone and home internet service is business related.
- Distribute a Business Expense Policy to all employees that clarifies that if the employee believes that they are not receiving appropriate reimbursement, they must notify their employer and provide documentation
- Clarify in the Business Expense Policy that the reimbursements are intended to cover all expenses incurred while working remotely. Ensure that the amounts you are paying are sufficient to cover these expenses.
A & A Employer Services can assist your company in determining the expenses that need to be reimbursed and the dollar amounts involved. We can also ensure that your employees receive these reimbursements in a timely manner through the payroll process.
If you have further questions about expense reimbursements or other payroll related questions. Please feel free to schedule a free consultation with our staff today to get answers to your questions.
Call our office today 888-305-1055 or click the icon to schedule a meeting