My employer does not pay for my cell phone or Internet service. When new administrators interview or schedule time a forum to talk to us, the question of them paying for one or both services usually is asked. Usually the response is something about it being complicated with a ton of paper work and an intention to look into simplifying it.
The federal tax agency [IRS] has been reminding employers that cellphones they provide employees should be treated as taxable income, unless employees can document that their phones are used only for business. Answer Your Cellphone. The Taxman Is Calling.
Any personal use is the invalidates the cell phones from being exempt.
If for us federal or state tax issues really is the issue, then perhaps the solution in the article could be put in place? Namely, treat the cell phones or Internet service as employee income. Let the employees choose if they want to pay for it out of their own pocket or get reimbursement as taxable wages.
Something bothers me still… I can’t put my finger on it.