It depends on the situation. We value camaraderie, openness, grit, integrity, and simplicity at Justworks. All four members present voted in favor of the salary and per diem recommendations. 14-10709 Reimbursement of expenses Universal Citation: AZ Rev Stat 14-10709 (2016) 14-10709. Streamline and simplify time tracking for you and your workforce. 708 0 obj
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Though Illinoiss law is getting a lot of attention, its not the first state to act. Other states (like Alaska and Arkansas) require reimbursement only if equipment purchased by employees for work-related purposes cannot be used during normal social activities of the employee or if the purchase/expense would bring the employees compensation below minimum wage. (8 Alaska Admin Code Section 15.165; Code of Arkansas Rules and Regs., 010-14-107(B).). Ann. With Resourceful Finance Pro arriving in your inbox, you will never miss critical stories on accounting, benefits, payroll & employment law strategies. We do not handle any of the following cases: And we do not handle any cases outside of California. Enter your username and password below to log in. office supplies and equipment, like printers and ink. 62 (a)(2) and (c)(2); 1.62-2(c)(4). First, double-check if your own state has any laws or any legislation circulating that could lead to new rules in the near future. The voters approved Proposition 302 effective at the beginning of the next regular legislative session. B. endstream
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Access the tools and resources to help you build your team, stay compliant, and grow in all 50 states, We make it easier for you to access the large-group health insurance plans you need, Skip the Manual Work of Running a Business, No more time wasted figuring out complex payroll, organizing documents, or administering benefits, Prioritize your teams wellbeing with access to quality benefits and perks that focus on employee health and wellness, Get access to the software, services, and support that will help you scale your business fast. Check out our online talks on topics that matter most when protecting your business and taking care of your team. 2, 1. Those expenses can further get defined as expenses . hbbd``b` 115,9.5; Mont. Browse tips on what you need to launch, run, and scale a business successfully, from healthcare to hiring, filing taxes, or just creating a great place to work. Returning excess amounts: If any amounts the employer pays to the employee exceed the amounts the employee spent, the employee must return excess amounts to the employer within a reasonable period of time. Many employers will reimburse an employee who uses their personal vehicle for business at a standard mileage rate. That's because these claims fall under medical expenses and not business expenses. Id. The most common are work-related supplies, travel, meals, and entertainment. 1= (
41-1104). Review SAAM . However, there are some costs that employers know employees will incur on a monthly basis and so it may make sense to provide a reimbursement on a more periodic basis. It did not mention the per diem clause. . 2. [11] California Labor Code 2802 LAB (An employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties). Essentially, these are laws requiring companies to reimburse employees for necessary expenditures incurred on the job. Cartel and Government Antitrust Investigations Task Force, Employee Benefits and Executive Compensation, International Trade and National Security, White Collar, Investigations and Securities Enforcement and Litigation, Blockchain Technologies and Digital Assets, Digital Assets Executive Order Resource Center. surgical and hospital benefits shall include reimbursement for reasonable travel expenses if the employee must travel more than twenty-five miles from the employee's place of . Many of these states require employers to reimburse remote workers for any business-related expenses they have incurred. Section 39-2-701(1)). The lengthy history distinguishing salary from reimbursement (including per diem) in Arizona leads to the conclusion that the Commission has constitutional authority to recommendonlysalary changes. For instance, if the employer has an accountable plan, but the employee fails to properly substantiate the expenses within a reasonable time, or the employee fails to return excess advance payments, then any reimbursements could become taxable income. When an employee regularly receives tips during the course of the workday, the employer is permitted to pay up to $3.00 per hour less than minimum wage. Are you a Justworks customer? This distinction between salary and per diem reimbursement is not unique. Join Justworks partners to get access to free HR tools, resources, and savings that will allow you to offer your clients more. 4, pt. When the Commission on Salaries for Elective State Officers ("Commission") recommended changing legislative"per diem"rates, it acted beyond its statutory power to recommend changing legislative"salaries." See Ruiz v. Hull, 191 Ariz. 441, 459, 957 P.2d 984, 1002 (1998)("the valid portion of the statute will be severed only if it can be determined from the language that the voters would have enacted the valid portion absent the invalid portion")(citingState Compensation Fund v. Symington, 174 Ariz. 188, 195, 848 P.2d 273, 280 (1993)). Id. Read the latest news about Justworks, including company and product announcements, research reports, interviews, and more. This form is not to be used to record allowances. Expenses incurred by employees in the course of business should be costs incurred by the employer, not by its employees. ~Rhg,$u"KqaN:SncRS -(dg"R80gy3j"25c%BVWI>/q/3[k9!C=uzd82]&Bfr_*F>$wXjUT
Three of the four expressed their views on the severability issue, unanimously expressing their intent that the clauses be severable. The cost of work-related travel is generally a reimbursable expense. 3. 180, 2 (currently codified at A.R.S. Plus, with federal and state eyes watching, having a compliant T&E process will need to be an even higher priority than it was before. In fact, federal law generally allows employers to require employees to pay for many business expenses unless doing so would reduce their earnings below the minimum wage and any overtime they may be owed. The arguments did not mention the per diem clause. (This has remained the same for the last few years.) In this review, we followed up on the recommendations from our prior reports, Reports 17-306 and 19-302, These are not typical expenses that employers would reimburse. If housing or meals are provided, the reimbursements may be less than, and cannot exceed, the lodging and meal and incidental expense reimbursements pursuant to subsection C of this section. The extent of these expenses will depend on the employees job duties. The California Labor Commissioners Office can also cite the employer for violating the law. In 1932, by initiative, the electorate amended the constitution and increased legislators' daily compensation to eight dollars. Id. Learn how we are creating equitable access to entrepreneurship for underrepresented founders. Several times in this decade legislative leaders received annual per diem amounts in excess of $9,000, the amount of the voter-approved salary increase, because of the heavy demands on their time. I'm interested in receiving information about Justworks. The director of the department of administration shall also establish policies and procedures for the claiming of lodging and meal and incidental expense reimbursements and long-term subsistence allowances by persons temporarily required, for a period of not less than thirty days, to reside away from their primary place of residence. Shouse Law Group has wonderful customer service. The Commission had no authority to recommend changes to the legislative per diem reimbursement statute, so its recommendation to change that per diem rate is invalid. Generally, this wont include commuting expenses between an employees home and workplace. The commissioners were the architects of the language and intended that the salary increase be allowed to stand even if the per diem clause were invalid. 949 0 obj
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A: With employees having historically worked in an office environment, many of the supplies and resources they utilized to complete their job duties were provided for by the employer (i.e., printer paper, pens/pencils, computers, electricity, computer monitors, internet, phones, etc.) Former ARIZ. CONST. Thats where employee expense reimbursement comes in. Code. There is no federal law that requires employers to reimburse their employees for employment-related expenses, and few state laws do so, either. For almost thirty years following the creation of the Commission, the Legislature continued to set its own reimbursement rates. Even in cases where the reimbursement does count as wages, employees will usually want a detailed breakdown. Q ta$DLatBi$`1 #,b Authorship Credit:Carter Norfleet and Shareef Farag. . [13] See IRS Publication 5137 (Rev. How do you qualify? What may be reasonable in one instance might not be in another. Make sure that you understand and follow the applicable laws in the states where you have employees. Your company required or approved the employee to make the expense. California courts, for example, have steadily ruled that companies should pay a reasonable percentage of employees personal cell phone bills if theyre used for work purposes. That section and A.R.S. There is a certain expectation that if an employee uses their own money on the business's behalf, they should get reimbursed. Expenses that were properly incurred in the administration of the trust. As a result, many employers had to rapidly adjust to utilizing a virtual workforce. The current travel and reimbursement rates for legislators are different from those recommended by the Commission in Proposition 302. In Ariz. Att'y Gen. Op. 0
New Hampshire law requires employers to reimburse employees for expenses within 30 days . pO}]3 s,i25A7.c. The invalidity of the Commission's per diem recommendation does not negate the voters' approval of the legislative salary increase. This form is not to be used to claim travel reimbursements or advances. The Arizona Supreme Court upheld the law, concluding that reimbursement for expenditures fell outside the 1932 ban prohibiting the Legislature from changing its "compensation" or "salary." D. The director of the department of administration shall establish in the state accounting manual uniform procedures by which amounts less than the maximum lodging and meal and incidental expense reimbursement amounts may be claimed by a person who is in travel status for less than a full twenty-four hour period or by a person who does not provide lodging receipts. 1130 0 obj
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Other jurisdictions that already have expense reimbursement laws on the books include: Generally, your department knows what typical business expenses states will expect to be reimbursed, like transportation, lodging, meals and entertainment. )bdpw]o*)w1@3T l7+96CNxbjQg(@DkV`02(6CHzrd+=}eN^
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[2] D.C. Municipal Regulation Title 7, Section 910.1. The only evidence of the electorate's intent is the language of the 1998 Publicity Pamphlet prepared by the Secretary of State. hUn09imc8.=(2%C}"S6dR7@@*8k07\H05`kH? Lastly, you know these new business expense reimbursement laws could impact your budgets going forward. A long-term subsistence allowance for legislators shall be established pursuant to section 41-1104. SeeA.R.S. The employee also must submit business expenses within a reasonable period of time after they occurred. A: An employer is likely not responsible for the entire personal cell phone bill of an employee simply because that employee uses his/her personal cell phone for work purposes. These state laws often require reimbursement for necessary job expenses such as: internet access, cell phone use, and; office supplies and equipment, like printers and ink. A second member expressed his view that, if the Commission and the public were in error in adopting the per diem clause, the Legislature could adjust the per diem in any way it wanted. Get free summaries of new opinions delivered to your inbox! As if IRS regulations werent enough to keep up with, some states are adding their own expense reimbursement laws that your staffers will have to comply with, too. Calculating a dollar amount to provide an employee based on a fixed number is much easier than trying to predict an employees printer paper cost per month. It's best to have a written employee expense reimbursement policy in your employee handbook to ensure your organization has an action plan for remote workers. Former ARIZ. CONST. Under the 2005 Code the educator's expense deduction was scheduled to expire on December 31, 2005, as discussed in TIRs 05 . Section 2802; 820 Ill. Comp. The cost of work-related travel, including transportation, lodging, meals, and entertainment that meet the criteria outlined in IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses, are generally reimbursable expenses. Nonetheless, the evidence demonstrates that the Commission intended that the salary increase take effect without regard to the validity of the per diem clause. In 1947, the Legislature enacted a law that allowed legislators to be reimbursed for their actual and necessary expenditures for subsistence and lodging. You can explore additional available newsletters here. hb```b``>u,\AF d`xv@2!
3|T?20fgqE@I!QKDF~*vm78[r#ar x[G_*LeV n]3U!D(n[gAU(CjOZ2e Ditch the spreadsheets for HR software & tools weve built from the ground up. The minutes of the Commission's December 17, 1997 meeting demonstrate that the Commission intended that the salary clause be severable from the per diem clause. Employers should also reassess their employee reimbursement policies in order to ensure they remain compliant. This Office reached a similar conclusion in 1980. 2. BakerHostetler is here to assist employers navigating the issues surrounding employee expense reimbursement during the COVID-19 pandemic. The only time that the FLSA impacts work-from-home reimbursements is if the cost would lower the employees earnings beneath the applicable minimum wage. The unique manner in which Proposition 302 was developed requires review of the Commission's intent as well as the intent of the electorate to determine whether severance applies.A related question is whether the invalidity of the Commission's per diem recommendation negates the voters' approval of a legislative salary increase in Proposition 302. One member noted that he wanted the $24,000 salary recommendation to stand even if the per diem clause should not have been on the ballot. These types of reimbursable expenses tend to occur when employees travel for work, but can be associated with other activities related to their employment, including, for example, certain purchases of work-related supplies or tools. Rather than simply regurgitating the day's headlines, Resourceful Finance Pro delivers actionable insights, helping Finance execs understand what Finance trends mean to their business. 778.217 Reimbursement for expenses. home utilities, like heat and air conditioning. Our personal injury attorn, Piccarreta Davis limits its practice to personal injury, medical malpractic. Recently, Illinois modified its Wage Payment and Collection Act to include expense reimbursement rules. If an employer does not have an accountable plan in place, then IRS Publication 15 states: Payments to your employee for travel and other necessary expenses of your business under a nonaccountable plan are wages and are treated as supplemental wages and subject to the withholding and payment of income, social security, Medicare, and FUTA taxes.. Legislative reimbursement continued to be governed by then A.R.S. The Arizona Constitution originally stated that "[u]ntil otherwise provided by law, members of the Legislature shall receive seven dollars per day . Favor of the salary and per diem recommendations of work-related travel is generally a reimbursable expense salary and diem... Does count as wages, employees will usually want a detailed breakdown log in 708 0 obj < > Though. 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