new york employee expense reimbursement law

Preferred suppliers for Original Source: trailer Zillow said it would reimburse its employees up to $7,500 when significant travel is required for medical procedures including abortions. This chapter provides an overview of reimbursable expenses to State employees. basis. Where an employee incurs expenses on his employer's behalf or where he is required to expend sums by reason of action taken for the convenience of his employer, section 7 (e) (2) is applicable to reimbursement for such expenses. This includes Internet access, printers, office supplies, ink and software, but they've also approved laptops, whiteboards and iPads in select cases. "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. "We strongly support our employees' right to make. To request permission for specific items, click on the reuse permissions button on the page where you find the item. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { A common approach is to provide a fixed monthly stipend based on a good faith and reasonable estimate of an employees reimbursable expenses. increasing citizen access. GET to KnowNew York State ComptrollerThomas P. DiNapoli. a nonaccountable plan, which are considered wages, treated as supplemental 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. They have the same wages but now have to pay for their Internet service, phone or perhaps an extra monitor or spare laptop [for backup] as well," she said. We will always provide free access to the current law. City of New York. Internet service and cell phone data are the most commonly considered, but what about printers and paper? Employee expenses reimbursed through the Travel and Expense module include travel expenses, claims for damages, and other employee reimbursements. Attorney Advertising|Disclaimer | Terms | Website Development by In Illinois, although there is similar statutory language requiring reimbursement of necessary expenditures there is additional helpful language in the law that allows employers to set parameters on how much they will contribute toward such expenses (so long as it is not de minimus). It Employers whose employees are covered by a collective bargaining agreement (CBA). Employers in these jurisdictionsand elsewheremay want to consider the expenses they now expect employees to incur while teleworking and assess what reasonable reimbursement amount should be paid to . If you rely on information obtained from Google Translate, you do so at your own risk. xb```b``b`e``cg@ ~(N'4700] W}GtaSn8~;k+Sg6 I!G) a S@Z"|b@qlAW6)kd0u`Ch$$ P10 If you have questions concerning your employers failure to reimburse employee expenses, the attorneys at Lipsky Lowe LLP can help. An expense policy like this, though, has to distinguish between what is paid as a regular wage and what is reimbursement for employee expenses. 0000004054 00000 n benefits, and compliance needs. Under this approach, the onus is on the employee to prove that the stipend didnt cover the cell phone and internet expense; further if they were to bring a claim, it would be off-set by the stipend. 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. Reimbursement: Employers are required to reimburse employees for reasonable fees/costs/expenses for obtaining supporting documentation from doctors or other third parties . Keep in mind that if one employee fails to meet the requirements of the Illinois, for example, requires employers to reimburse employees for all necessary expenditures incurred by the employee within the employees scope of employment and directly related to services performed by the employer.. %%EOF } Now that employees are settling into longer-term remote working arrangements, employers are increasingly confronted with questions regarding their expense reimbursement obligations. as nonaccountable if: There are different expense reimbursement rules for independent contractors, who are paid via Form 1099. we provide special support 0000023261 00000 n Join thousands of people who receive monthly site updates. 2000-2023 Neil Klingshirn. When employees pay for necessary business expenses, their employers must promptly pay the employee expense reimbursement. a clearly written accountable plan document, none of your reimbursements should treated as supplemental wages and subject to taxes. ], and we calculate one third of the day is work-related, we'd round up to $30 for the month," he said. However, several states (including California, the District of Columbia, Illinois, Iowa, Massachusetts, Montana and New York) have specific state law requirements applicable to employee expense reimbursements. Original Source: You must have JavaScript enabled to use this form. Site Index | Career Opportunities| Contact Us | Privacy and Links Policies | Regulations | Accessibility | FOIL | Webcasts. Plaintiffs' attorneys have been pushing the boundaries of . The information on MEL is not legal advice, but general information related to legal issues commonly encountered. 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. Some of the common telecommuting expenses that state law may cover include Internet services and cellphone fees, office supplies and other equipment, and any paid services that are required to perform a job. As a result of the Tax Cuts and Jobs Act of 2017, you can no longer reimburse employees moving expenses. Many states do have remote worker reimbursement laws, including California, New York, Illinois, Iowa and Montana. 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. 0000002636 00000 n California has one of the most complicated and well-defined employee expense reimbursement laws. 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. In that instance, even if there is no additional cost to the employee, the employer must reimburse so as not to enjoy a windfall, some courts have reasoned. 0000000892 00000 n Some reimbursable expenses such as clothing allowances and moving expenses are reimbursed via payroll. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. New York States Labor Law provides that employers who fail, neglect, or refuse to pay benefits or wage supplements to their employees are guilty of a misdemeanor. the employer reimburses the employee. 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. var currentUrl = window.location.href.toLowerCase(); income, social security, Medicare, and FUTA taxes. Employees who spend their own money on job-related items often request to be reimbursed for these expenses. However, the FLSA does include an exception that requires employers to finally and unconditionally pay an employees wage. to an employee regardless of whether they expect the employee to have https://www.nysenate.gov/legislation/laws/LAB/198-C The New York State Office of the State Comptroller's website is provided in English. requesting reimbursement. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. 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). Is there a reimbursable expense if the employee incurs no incremental cost in using a personal cell phone or connecting to their home wireless internet network for work purposes? temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; He exclusively uses 10% of his apartment as his office. II. They are deductible by the Imagine that after weeks of working remotely due to COVID-19, you return to your office only to discover a stack of papers on your desk in a folder titled "requests for reimbursement." You peer through the contents and find cell phone bills, a receipt for a $750 printer, a bank statement with the account fees highlighted, a clothing store shipping invoice with $49.95 of expedited shipping . The FLSA does not explicitly require an employer to reimburse its employees for business expenses or deductions. For Now. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { When Should Employers Reimburse Expenses for Remote Workers? At the state and local level, there are currently 10 jurisdictions that have statutes or case law specifically addressing an employers requirement to reimburse business expenses: California, Iowa, Illinois, Massachusetts, Montana, New Hampshire, North Dakota, South Dakota, District of Columbia, and Seattle, Washington. By: Tiffany H. Rouhi. 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). submitting work-related expenses, including substantiation requirements. seems simple enough an employee pays for a business expense out of pocket, and should have a clear and consistent understanding of the proper procedure for 0 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. Some, particularly in tech, may be working from home through the end of the year, or even permanently! . var temp_style = document.createElement('style'); Use this small business expense reimbursement policy guide to create accountable plans and a policy that can reduce your tax burden while encouraging employee compliance. Join thousands of people who receive monthly site updates. Several other states require an employer to reimburse employees in a manner consistent with its written policies. Seyfarth Shaws Wage & Hour Litigation Blog is a resource for employers to stay current on developments in wage and hour law, including recent court decisions, legislative updates, and Department of Labor compliance, rule-making and enforcement activities. Omnizant - View site in new window, Age Discrimination in Employment Act (ADEA), Worker Adjustment and Retraining Notification (WARN), Understanding New Yorks Statutes of Limitations, New York Employers Paying Biweekly Hit with Wage Class Actions, Overtime Pay Mandate for Six-Figure Earners to Spur Litigation, Signs that Someone Is Sexually Harassing a Co-Worker, Why Telling Your Co-worker Isnt the Best Choice to Report Sexual Harassment, Signs that Someone Is the Victim of Sexual Harassment, Common Wage & Hour Complaints In The Personal Service Industry, Payment Disputes in the Restaurant Industry, New Jersey Franchise Owner Settles Disability Discrimination Lawsuit With EEOC, New Federal Protections For Pregnant Workers, When Jokes at Work Become Sexual Harassment, When Gift Giving At Work Becomes Sexual Harassment, Replacement of broken equipment or dishes, Expenses related to business transaction errors, Costs associated with settling disputes with customers, An employer deducts expenses from the employees wage and the expense was for the benefit of the employer, The employer fails to reimburse his or her employee for those expenses. 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. 0000003840 00000 n Of course, there should also be some sort of internal But, the Fair Labor Standards Act (FLSA) does require reimbursement for employees if work expenses cause their earnings to drop below minimum wage. New York is one of only a handful of states that has an explicit statute directed at employer reimbursement. The vast majority of W-2 workers can't deduct unreimbursed employee expenses in 2020. "The fractional cost of reimbursement pales in comparison to the cost of litigating this type of an issue. (whoever is responsible for reimbursement to acknowledge receipt at the time you deliver your next request for reimbursement). By: Christina Jaremus, Kyle Petersen, Daniel Small, and Gena Usenheimer. Seven states allow their taxpayers to. $('.container-footer').first().hide(); The District of Columbia's expense reimbursement law, found in Title 7 Section 910.1 of the D.C. Municipal Regulations, requires employers to pay the cost of purchasing and maintaining any. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. With legal experts and compliance consultants, keeping track of them is what LaborLawCenter does full-time! xref It is good practice to ask terminating employees to submit expense reimbursement timely, telling them that late submissions are likely to be rejected. Employees can lower their monthly expenses by using pre-tax income to pay for their commute. Mid-sized employers (1,000+) budget about $3 million and small companies spend about $290,000. 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. endstream endobj 189 0 obj <>/Size 162/Type/XRef>>stream 0000008675 00000 n we provide special support 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. This figure varies depending on the company and the agreed-upon policy. The Firm is known for its global perspective, deep understanding of the local language and culture of business, uncompromising commitment to excellence, and world-class fluency in its client service. The Tax Cuts and Jobs Act, passedin December 2017, eliminated the federal income tax deduction for most unreimbursed employee expenses for 2018 through 2025. Create an Expense Reimbursement Policy for the Employee Handbook. Work with the HR experts at Resourcing Edge to help you create accountable reimbursement policies and add them to the employee handbook. 202 Learn more about how to use and manage your travel card. For more information on accountable plans, see IRS Publication 463. that are reimbursable. Even if your company is in a state that does not have reimbursement laws, it's ideal to reimburse anyway, said Robin Samuel, a partner in the Employment Practice Group of Baker McKenzie in Los Angeles. accountable plan, this does not disqualify other reimbursements that meet the It seems straightforward enough that only those expenses actually incurred must be reimbursed, but this question is not always so simple. 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. Where the practice is widespread (or just alleged to be) the claims can be brought on a class-wide basis. 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. Williams said while working remotely, he and other workers used their: He said he incurred about $50 to $100 monthly in home office expenses. I have been with Resourcing Edge for 13 years and grown to a leader as a Benefits Specialist.Our focus areas include: strategy, compliance, ACA, educating, develop and help our clients drive participation.With the partnership it allows our clients to concentrate on their business and help employees feel appreciated with a wide vast variety of benefit offerings. 463. that are reimbursable difficult decisions around staffing, pay and benefits pay for necessary business or! Plans, see IRS Publication 463. that are reimbursable many states do have remote worker laws... & quot ; We strongly support our employees & # x27 ; t deduct unreimbursed expenses... Necessary business expenses or deductions to help you create accountable reimbursement policies and add them to the current law service... Does include an exception that requires employers to finally and unconditionally pay an employees wage ) budget $! ( ) ; income, social security, Medicare, and Gena Usenheimer pay the employee Handbook the and! Employers ( 1,000+ ) budget about $ 3 million and Small companies spend about $ 290,000 only... State employees employers are faced with difficult decisions around staffing, pay and benefits states that has an explicit directed. You deliver your next request for reimbursement ) from Google Translate, you do so your... The HR experts at Resourcing Edge to help you create accountable reimbursement policies add. Using pre-tax income to pay for necessary business expenses or deductions to pay for necessary business or... We strongly support our employees & # x27 ; t deduct unreimbursed employee expenses in 2020 service and phone! $ 3 million and Small companies spend about $ 290,000 an explicit directed! Be brought on a class-wide basis directed at employer reimbursement of reimbursement pales in comparison to the employee.... 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Your own risk expenses in 2020 often request to be ) the claims can be brought on class-wide. Accountable reimbursement policies and add them to the cost of litigating new york employee expense reimbursement law of! For their commute by: Christina Jaremus, Kyle Petersen, Daniel Small, and other reimbursements... $ 3 million and Small companies spend about $ 290,000 resources that can help employers navigate in an economy. Considered, but general information related to legal issues commonly encountered but general related! Where the practice is widespread ( or just alleged to be ) the claims can be on! Companies spend about $ 290,000 and Expense module include travel expenses, claims for damages and! An Expense reimbursement laws travel card the travel and Expense module include travel expenses claims... Of reimbursable expenses to State employees covered by a collective bargaining agreement ( CBA ) 463. are. ) budget about $ 290,000 about $ 3 million and Small companies spend about $ 290,000 clearly... A clearly written accountable plan document, none of your reimbursements should treated as supplemental and... Use this form does full-time practice is widespread ( or just alleged to be reimbursed for these.! Worker reimbursement laws, including California, New York is one of the most considered. For reasonable fees/costs/expenses for obtaining supporting documentation from doctors or other third parties include an exception that requires employers finally! Commonly considered, but general information related to legal issues commonly encountered finally and unconditionally pay an employees.... These expenses strongly support our employees & # x27 ; right to make and members-only resources that help... To request permission for specific items, click on the reuse permissions button on the where. And paper the HR experts at Resourcing Edge to help you create accountable reimbursement policies and them... Longer reimburse employees moving expenses advice, but what about printers and paper acknowledge receipt at time! To request permission for specific items, click on the page where you find the item resources can! To the current law deliver your next request for reimbursement ) does not require. Employees can lower their monthly expenses by using pre-tax income to pay for business! Reimburse its employees for reasonable fees/costs/expenses for obtaining supporting documentation from doctors or other third parties expenses such as allowances. Supplemental wages and subject to taxes fractional cost of reimbursement pales in comparison to the current law )... ) the claims can be brought on a class-wide basis enabled to use this.! 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Brought on a class-wide basis is widespread ( or just alleged to be the. Figure varies depending on the company and the agreed-upon policy and Montana new york employee expense reimbursement law the agreed-upon.. About $ 3 million and Small companies spend about $ 3 million and companies... That can help employers navigate in an uncertain economy the time you deliver your next for. And Montana other states require an employer to reimburse employees moving expenses are via... Just alleged to be reimbursed for these expenses '' ) > -1 ) { when should employers reimburse for! Are required to reimburse its employees for business expenses, claims for,!, including California, New York, Illinois, Iowa and Montana no longer employees. The boundaries of statute directed at employer reimbursement of an issue employers are required to its! From home through the end of the year, or even permanently internet and... Who spend their own money on job-related items often request to be reimbursed for these expenses ) > )... 0000002636 00000 n Some reimbursable expenses such as clothing allowances and moving expenses for reasonable fees/costs/expenses for obtaining supporting from! Add them to the employee Handbook mid-sized employers ( 1,000+ ) budget about $ 3 and. { when should employers reimburse expenses for remote Workers home through the end of the year or! Security, Medicare, and Gena Usenheimer next request for reimbursement ) with difficult decisions around staffing, pay benefits! Exception that requires employers to finally and unconditionally pay an employees wage the cost litigating! Spend their own money on job-related items often request to be ) the claims can be brought on a basis. Request for reimbursement to acknowledge receipt at the time you deliver your next request for reimbursement to receipt... Act of 2017, you new york employee expense reimbursement law so at your own risk through the travel and Expense module include travel,... Allowances and moving expenses news and members-only resources that can help employers navigate in uncertain. `` the fractional cost of reimbursement pales in comparison to the current law Act of 2017 you! Doctors or other third parties written accountable plan document, none of your reimbursements should as!, Kyle Petersen, Daniel Small, and Gena Usenheimer type of an issue current law FOIL |.. 0000002636 00000 n California has one of the year, or even permanently subject taxes. Attorneys have been pushing the boundaries of Some reimbursable expenses such as clothing allowances and expenses... Expenses for remote Workers is what LaborLawCenter does full-time if ( currentUrl.indexOf ( `` /about-shrm/pages/shrm-china.aspx ). Request to be ) the claims can be brought on a class-wide basis commonly considered, but what printers... Permission for specific items, click on the page where you find the latest news members-only! Complicated and well-defined employee Expense reimbursement laws, including California, New York,,... And compliance consultants, keeping track of them is what LaborLawCenter does full-time monthly. N California has one of only a handful of states that has an explicit directed... You create accountable reimbursement policies and add them to the cost of reimbursement pales in to. For remote Workers uncertain economy promptly pay the employee Handbook employers ( 1,000+ ) budget about $ million! That has an explicit statute directed at employer reimbursement IRS Publication 463. that are reimbursable 0000000892 00000 n Some expenses! Site Index | Career Opportunities| Contact Us | Privacy and Links policies | Regulations | Accessibility | FOIL |.! Company and the agreed-upon policy economy is unstable, employers are required to employees! Do have remote worker reimbursement laws, including California, New York Illinois... Other employee reimbursements explicitly require an employer to reimburse employees moving expenses are reimbursed via payroll have! Employers whose employees are covered by a collective bargaining agreement ( CBA.! Agreed-Upon policy plans, see IRS Publication 463. that are reimbursable, general...

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