Federal law excludes some types of employees from the requirement to receive one and one-half times their regular rate of pay. The employer advances or pays an amount The Tax Cuts and Jobs Act, passedin December 2017, eliminated the federal income tax deduction for most unreimbursed employee expenses for 2018 through 2025. Some, particularly in tech, may be working from home through the end of the year, or even permanently! 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). The District of Columbia's expense reimbursement law requires employers to pay the cost of purchasing and maintaining any tools the employer requires to perform the employer's business. 1. The New York State Office of the State Comptroller's website is provided in English. "If the employee's Internet bill is $90 a month [for Internet use only, not TV, DVR, phone, etc. While state law cannot be characterized as uniform across states, below are some key components to consider when revisiting any such obligation under these state laws. 0000020567 00000 n When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. The maximum allowable } Under the Fair Labor Standards Act (FLSA), there is no direct expense reimbursement requirement. Refer to the sections within Chapter XII Expenditures of this guide and the Payroll bulletins available on the Office of the State Comptrollers website for more detailed information as needed. Employers are therefore well advised to re-evaluate the scope of potential expenses, legal obligations for reimbursement, and the state of written policies to ensure the greatest measure of compliance with law. Be aware, however, that some states have their own laws surrounding expense reimbursement. In professional licenses. 0000008983 00000 n Several states have also enacted their own expense reimbursement laws that either meet or exceed the standard set forth in the FLSA. depending on whether you have an accountable or nonaccountable plan. Employers must reimburse their employees within 30 days of the reimbursement becoming due. } when you pay an employee, you will need to withhold and contribute taxes on the It does, however, require employers to pay their employees federal minimum wage after accounting for all costs. xbbb`b``3 2< We recommend you direct state specific inquiries directly to your Seyfarth lawyer of choice. Attorneys Labor Law A to Z Wrongful Termination Wage & Hour Discrimination Workers' Comp Locations Call or Message Us 24/7 877-783-6926 Required Field 24/7 Help: 1-(877)-SUE-MY-BOSS Before you call us: Due to the pandemic, employees in the US are working from home in unprecedented numbers. XIII.1 Employee Expense Reimbursement Overview, New York State and Local Retirement System (NYSLRS), New York State Budget Analysis and Financial Reporting, New York City Economic and Fiscal Monitoring, XIII.2 Employee Expense Reimbursement Policies, XIII.2.A Expense Report Mandatory Header Fields, XIII.3 Record Retention Travel and Expense, XIII.4 Employee Travel Expense Reimbursement, XIII.4.A Employee Travel Card Reconciliation, XIII.4.D Meals and Incidental Expenses Breakdown, XIII.5 Alternatives to the State Travel Card, XIII.6 Potential Tax Consequences of Assigning an Incorrect Official Station, XIII.7 Office of the State Comptroller Travel Manual, XIII.8 - Procedures for Employee Non-Travel Expense Reimbursement, XIII.9 Allowed Values for Processing Payments in SFS, XIII.10 Refunds Owed to the State by an Employee, XIII.10.A Refunds Owed to the State by an Employee - Using a State-Issued Check, XIII.10.B Refunds Owed to the State by an Employee - Using an Employee Check, XIII.10.C Refunds Owed to the State by an Employee, XIII.10.D Refunds Owed to the State by an Employee - Using a Due to State Offset, XIII.11 Submitting Travel and Expense Reimbursement Requests for Inactive Employees, XIII.12 Procedure for Reporting Taxable Employee Expense Reimbursements for Prior Open Tax Years, Minority- and Women-Owned Business Enterprises (MWBEs), damages or losses caused by reliance upon the accuracy of any such information, damages incurred from the viewing, distributing, or copying of such materials. Site Index | Career Opportunities| Contact Us | Privacy and Links Policies | Regulations | Accessibility | FOIL | Webcasts. The vast majority of W-2 workers can't deduct unreimbursed employee expenses in 2020. The public hearing will take place on Thursday, November 3, 2022 at 2:00 p.m. at the NH Department of Labor, 95 Pleasant Street, Concord, NH 03301. submitting work-related expenses, including substantiation requirements. United States, New York State, and New York City governments, including any office, department, independent agency, authority, institution, association, society, or other body of the state, including the legislature and the judiciary. Members can get help with HR questions via phone, chat or email. If employers fail to adequately reimburse these expenses, the employer may be receiving an hourly kickback from each employee. As a result of the Tax Cuts and Jobs Act of 2017, you can no longer reimburse employees moving expenses. Mid-sized employers (1,000+) budget about $3 million and small companies spend about $290,000. been paid as wages. accountable plan, this does not disqualify other reimbursements that meet the 0000008928 00000 n Zillow said it would reimburse its employees up to $7,500 when significant travel is required for medical procedures including abortions. The FLSA does not explicitly require an employer to reimburse its employees for business expenses or deductions. submit reimbursable expenses within 30 days of incurring the expense. The more employees who sign up for transportation benefits, the more the employer can save. Employee expense reimbursement is an area that's sometimes overlooked by business owners. Mileage rates Mileage rates are based on the standard mileage allowance established by the Internal Revenue Service. Charitable contributions and contributions to employee benefits plans such as health coverage and retirement accounts. Federal laws do not require employers to reimburse employees for work-related expenses, but a number of state laws do require reimbursement. This is why a good employee expense reimbursement policy can be handy. Work with a Professional Employer Organization such as Resourcing Edge to ensure compliance with applicable laws and develop an accountable expense plan to help maximize tax benefits. The facts in your case may be different too. By way of example, some of these statesnotably California and Illinoishave strict reimbursement laws. (state law may require employees to be reimbursed for business expenses). 0 While there is some discretion the employer can exercise in determining the amount of reimbursement (such as actual expenses and the reasonableness of the employee's choice: i.e., was the employee "required" to use their own phone), the following language by the court shows the standard is still reasonable reimbursement (which means if . "If they don't reimburse, it's as if employees took a salary cut. 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. Stay tuned for more on that! If you havent revisited your employee expense reimbursement policies recently, some business expenses may no longer qualify for an accountable plan. 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. create a detailed reimbursement procedures guide, team up with Resourcing Edge. For more information: www.bakermckenzie.com, Reimbursement Refresher: Cell Phone and Internet Expenses Related to Telecommuting in the US, Why Insurers May Worry About New York City's New Salary Transparency Law, Navigating the New Rules Regarding Company Profit Sharing Payments In Mexico (Video Chat), AI in Recruitment and Hiring: Checking Your Blind Spots, Avoiding Discrimination Lawsuits Following Layoffs, Best Practices for Tracking Proof of Employee Vaccinations, Changes in the Workplace Now That We Have COVID-19Vaccines, Charged Speech in the Workplace: Knowing When to Step In, Cost-Cutting Considerations in the Workforce Without Layoffs, COVID-19 Corporate Travel Considerations Going and Coming Back, COVID-19: It's Not Over Until It's Over, Employers, Diversity, Equity & Inclusion | Best Practices for Managing & Collecting Employee Diversity Data, Employer WARN-ing: Notice Requirements to Know Before Layoffs, Employers: All Eyes on Salary and Pay Range Disclosure in US Job Postings, Extended Summer Travel in the Era of Remote Work, Guidelines for Accommodating Sincerely Held Religious Beliefs and Disabilities for Employers Mandating Vaccinations, How Employment Counsel Add Value to a Company's Inclusion & Diversity Programs, Key Considerations in High Profile Investigations, Labor Unions and the Workforce: Whats Trending and How to Get Out in Front, Mandatory Vaccinations in the Workplace 2.0: Spring 2021 Update, Masks Off? Unique COVID-Related Wage & Hour Issues Employers Need to Know, US Immigration Considerations During the Pandemic, Workplace Safety | Practical Tips for COVID-19 Notifications, Protecting trade secrets in the rapid remote world, The Reopening Playbook: What US Employers Should Be Thinking About Right Now, COVID-19: 3 Key Areas for US Employers to Master Now, Cost-Cutting Strategies in the Wake of COVID-19. 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. The IRS has different reporting requirements While employers typically provide a range of office supplies to remote workers, including laptops, keyboards and printers, employees often payfor additional expenses. excess reimbursements or allowances. The mileage reimbursement rate set forth by the Internal Revenue Service (IRS) is currently 57.5 cents per mile as of 2019. business expenses. They will need to be reimbursed for meals, gas, lodging, entertaining clients, and more. "In the end, you may even find that you can go remote for much of your workforce, and while these costs add up, they are likely still less than the real estate and facility costs for having people work in the office," he said. For any questions please email or call Sarah Fuller at Sarah.F.Fuller@dol.nh.gov or 603-271-3597. Google Translate cannot translate all types of documents, and it may not give you an exact translation all the time. a clearly written accountable plan document, none of your reimbursements should Many states do have remote worker reimbursement laws, including California, New York, Illinois, Iowa and Montana. should have a clear and consistent understanding of the proper procedure for Should We Panic Due To The FTCs Proposed Rule? Under the law, for-profit and nonprofit employers with 20 or more full-time non-union employees in New York City must offer their full-time employees the opportunity to use pre-tax income to purchase qualified transportation fringe benefits. New York State is one of only a few states that explicitly requires employers to reimburse employees for work-related expenses. $('.container-footer').first().hide(); A reasonable time period ", Lewis said that he implemented a written policy that anything expensed "is subject to return upon termination of employment, and [we created] an addendum that there could be a payroll deduction for any non-consumable expense not returned.". Maybe ask your payroll dept. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. At Sungevity, Trust said they've adopted a practical policy on work-from-home expenses. 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. %PDF-1.7 % While working from home raises a myriad of issues (e.g., data privacy and security, health and safety, employee engagement, and more), this post focuses on expense reimbursements related to telecommuting. I am using my own funds, but reimbursements are NOT made in a timely manner; moreover, they are often in complete ( no withholds, challenges to the expenses). This Google translation feature is provided for informational purposes only. 2022 FLSA Litigation Metrics & Trends, California Peculiarities Employment Law Blog, Management Writes: Practical Labor Law Updates, Workplace Safety and Environmental Law Alert Blog. Also, we advise that employers maintain documentation to support the reasonableness of the stipend that they establish, in case the amount of the stipend is ever attacked as being too little (such that it does not cover an employers full reimbursement obligation) or too much (such that the excess should be treated as compensation for work rather than reimbursement). We will always provide free access to the current law. The answer likely depends on where the employee is located. The date reimbursement is due is typically the date that the employee submitted the expense for reimbursement. Learn more about how to use and manage your travel card. Policy Statement. for non-profit, educational, and government users. Employer has not reimbursed expenses for months. business expense reimbursement. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. The employee fails to Federal law doesn't require employers to reimburse their employees for work expenses. Under the law, for-profit and nonprofit employers with 20 or more full-time non-union employees in New York City must offer their full-time employees the opportunity to use pre-tax income to purchase qualified transportation fringe benefits. Federal law states that employers only have to reimburse for work-related expenses when these expenses drop the employee's earnings below minimum wage. NY 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. The Department of Consumer Affairs (DCA) enforces the law and coordinates the Citys public education and outreach campaign to help employers and employees know their responsibilities and rights when it comes to commuter benefits. maintained. 162 0 obj <> endobj Those expenses can further get defined as expenses . A well-drafted expense reimbursement policy will: (a) manage expectations about which business-related expenses may be reimbursed; (b) establish procedures employees must follow to be reimbursed; (c) set reasonable cost controls on employee business expenses; and (d) ensure that business expenses are appropriate. Where the practice is widespread (or just alleged to be) the claims can be brought on a class-wide basis. Some of these statesnotably California and Illinoishave strict reimbursement laws reimbursement is due is typically the that. Their employees within 30 days of incurring the expense the economy is unstable, employers are faced difficult! 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