The State of New York, its officers, employees, and/or agents are not liable to you, or to third parties, for damages or losses of any kind arising out of, or in connection with, the use or performance of such information. 0000004318 00000 n As explained below, reimbursement might be required in these states for business-related use even if the employee will not incur an extra expense, such as when an employee has an unlimited amount of data and minutes on their cell phone. requesting reimbursement. we provide special support Federal law doesn't require employers to reimburse their employees for work expenses. Regardless of the specific avenue for ensuring the employer does not improperly shift business expenses to its employees, all employers should be aware of their obligations to reimburse and review and update their expense reimbursement policies to take into account the applicable law and the expenses their newly-expanded remote workforce might incur. endstream endobj 189 0 obj <>/Size 162/Type/XRef>>stream Maybe ask your payroll dept. The information on MEL is not legal advice, but general information related to legal issues commonly encountered. SHRM Employment Law & Compliance Conference. Not within 30 days of submission? Some reimbursable expenses such as clothing allowances and moving expenses are reimbursed via payroll. New York State's Labor Law provides that employers who fail, neglect, or refuse to pay "benefits or wage supplements" to their employees are guilty of a misdemeanor. Alternatively, employers can establish a process by which employees are only reimbursed after submitting a receipt or other documentation confirming that they indeed incurred the expense. A good expense reimbursement policy clarifies which expenses are and are not covered and . Key Considerations for Employers as States Lift Mask Mandates, Momentum to Mandate Vaccinations in the Workplace: What Employers Need to Know Now, Navigating Political Speech in the Workplace, Providing Perspective on President Biden's Executive Order on Promoting Competition in the American Economy, Reconceptualizing the Importance of Place, Religious Beliefs in the Workplace Following the Supreme Court's Bostock Decision. SETTING UP A COMMUTER BENEFITS PROGRAM, http://web.mta.info/nyct/fare/rfindex.htm, IRS Employers Tax Guide to Fringe Benefits, http://www.publictransportation.org/tools/carbonsavings/Pages/default.aspx. Are they legally obligated to? 0000000016 00000 n } a nonaccountable plan, which are considered wages, treated as supplemental BYOD, or bring your own device, policies are becoming more common in work environments. 0000001229 00000 n "Obviously, some people need to be onsite. Members can get help with HR questions via phone, chat or email. The types of expenses Several states have also enacted their own expense reimbursement laws that either meet or exceed the standard set forth in the FLSA. The more employees who sign up for transportation benefits, the more the employer can save. A ring light might be nice for all those Zoom meetings, but is it necessary? Work with the HR experts at Resourcing Edge to help you create accountable reimbursement policies and add them to the employee handbook. This approach will usually cover the vast majority of expenses but it should nevertheless be coupled with a process by which employees can seek reimbursement of additional expenses that were not covered by the stipend. Original Source: If an employer misrepresented job, do I have to pay back moving costs? Now let us go beyond your example and apply the same methodology to the next week, in which the same employee services the same customers who once again are charged $2000. While most states don't have reimbursement laws, "it's up to the employer to do the right thing," said Laura Handrick, an HR professional at Choosing Therapy in Brooklyn, N.Y. She said that many employers are saving money on office overhead, such as facilities maintenance and electricity, while employees are working from home. If you need to manage your card, make changes to it, or have a question about a procedure related to your T-Card, check here. Note that the expense must be "required" in order to be reimbursable. Mileage rates Mileage rates are based on the standard mileage allowance established by the Internal Revenue Service. Employers who get expense reimbursements wrong may end up having to compensate workers for unreimbursed expenses, plus interest, penalties, and attorneys' fees. order to qualify for an accountable plan, the employers reimbursement or 0000002481 00000 n to an employee regardless of whether they expect the employee to have 0000023474 00000 n Employees often personally pay for expenses on behalf of their employers, such as office supplies, postage costs, or even customer-related costs. In California, reimbursement also may extend to the use of an employee's car for work purposes, Samuel said, but not to expenses that employees would incur under normal circumstances. Learn more about how to use and manage your travel card. Here at LaborLawCenter our Compliance Experts are constantly working to stay on top of the many compliance changes so you don't have to. But for those who do not, or who do not daily, this is a good alternative.". This is why a good employee expense reimbursement policy can be handy. One of the key components of the most onerous expense reimbursement laws is the requirement to reimburse for any necessary expense, which begs many a question about what types of expenses must be reimbursed. My Company Requires Employees Sign Non-competes. An expense policy like this, though, has to distinguish between what is paid as a regular wage and what is reimbursement for employee expenses. Under Reimbursement: Employers are required to reimburse employees for reasonable fees/costs/expenses for obtaining supporting documentation from doctors or other third parties . been paid as wages. Employee expenses reimbursed through the Travel and Expense module include travel expenses, claims for damages, and other employee reimbursements. Most employee expenses will be reimbursed through the Travel and Expense module in the Statewide Financial System (SFS). (last accessed Dec. 13, 2016). The FTCs Proposed Rule on Non-Competes: What Employers Need to Know, The Proliferation of Pay Transparency Laws: What US Employers Need to Know, Tying Compensation to Furthering Inclusion and Diversity Goals, US, UK and EU Whistleblower Developments for Multinational Employers. With New York State reimburses employees for business use of a personal vehicle based on the standard mileage allowance established by the Internal Revenue Service (IRS) and the U.S. General Services Administration (GSA). Montana's employee business expense reimbursement law is similar to that of California's and Illinois'. Employees often use their personal resources to pay for expenses necessary to carry out their employment. Trend Watch: The First Wave of COVID-Related Employment Litigation What's on the minds of employers and litigators during COVID-19? The trickiest areas are cell phones and internet given that employees are now working from home because they cannot go into the office, as opposed to perhaps at their convenience. The policy should clearly articulate the employers expectations for the tools and equipment that are necessary to do the job from home, and establish guardrails for when and how employees can purchase equipment with the expectation that the company will foot the bill. expenses that can be reimbursed include: Usually, See: 1 answer | asked Oct 5, 2015 12:27 PM [EST] | applies to, wage payment and reimbursement of bs expenses, Can my company withhold my last check as reimbursement for moving expenses. Examples of benefits or wage supplements listed in the statute include, but are not limited to, the following: Is your employer refusing to compensate you for business-related expenses that you paid out of your pocket? Repayment of tuition and training costs. In light of this, as many as 11 US states, and Washington D.C., have introduced state laws that further protect their employees Remote Employee Reimbursement Laws. Please confirm that you want to proceed with deleting bookmark. oversight to make sure all reimbursements are properly received, reported, and If employers fail to adequately reimburse these expenses, the employer may be receiving an hourly kickback from each employee. taxes. Additionally, employers that are found to have willfully failed to properly reimburse expenses may be required to pay interest and civil penalties of up to $1,000 per violation. Tell us more about you to receive content related to your area or interests. 0000001407 00000 n Baker McKenzies global Employment & Compensation team of over 700 lawyers in 45 countries has been ranked Band 1 by Chambers Global for Employment law for 12 consecutive years. As of 2021, the IRS set that rate at $0.56 per mile or about $280 on a 500-mile round trip. Law Salaries & Employee Benefits Reimbursement for Travel & Moving Expenses Upon Transfer, Reassignment or Promotion New York State Finance Law Sec. count as taxable income. The common practice that is evolving is to provide a flat monthly stipend and inform employees in writing that employees may submit expense reimbursement requests to the extent that the stipend does not otherwise cover their business internet and cell phone usage. $(document).ready(function () { Given this, when crafting a nationwide policy, sometimes its simplest to use California as the high water mark. Common business 0000020281 00000 n Employers, of course, want to ensure employees working from home have a workspace that is safe and productive. We will always provide free access to the current law. Reimburse for the actual voice and/or data fees incurred for business purposes, which requires employees to submit expense reports itemizing the costs of calls made for work purposes and the costs of data used for work supported with cell phone bills or other evidence of the costs (this is a time intensive process for employees); Reimburse for a percentage of voice and/or data fees that accurately reflects the amount of mandatory business usage, and if a percentage or flat monthly amount is used, then allow employees to seek reimbursement for any additional costs incurred over the percentage or flat amount if the actual costs of business use exceed those amounts (this can be hard to determine given the number of different plans available); or. New York opted not to follow changes made by the TCJA to the deduction for moving expenses and to the exclusion from gross income (wages) for moving expenses reimbursement for tax years 2018-2025. Can employers require employees to use of personal devices & internet for work duties? reduced expenses. %PDF-1.7 % We understand how frustrating not receiving adequate reimbursement can become for employees. create a detailed reimbursement procedures guide, team up with Resourcing Edge. According to the IRS, employees must now include moving expense reimbursements in employees wages, except for certain members of the Armed Forces. By way of example, some of these statesnotably California and Illinoishave strict reimbursement laws. should re-examine their reimbursement and allowance policies in light of the Be handy more the employer can save work with the HR experts at Resourcing.. Be & quot ; required & quot ; in order to be onsite or $! 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