In Minnesota, for example, employees only have to be compensated for certain business expenses at the end of their employment. Former ARIZ. CONST. However, given the shift to remote work occasioned by the COVID-19 pandemic, employers will want to be mindful of the ways in which their employees are working and business-related expenses are being incurred to ensure employees are being properly reimbursed per applicable federal and state law. The extent of these expenses will depend on the employees job duties. We do this with a simple and friendly platform, expert support from real people when its needed, and access to corporate-level benets that ensure people feel secure and valued. I'm interested in receiving information about Justworks. Thus, while the Commission's recommended $24,000 annual salary for legislators that the voters approved is valid, its attempt to alter the per diem reimbursement rate for legislators is not. 2023 LawServer Online, Inc. All rights reserved. 'H"2Hd) ~ K(7e[4;'^|IMw!o*m5{wp!s(
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778.217 Reimbursement for expenses. While there are no federal requirements for reimbursing remote work costs for your employees, some states and cities have enacted stricter employee expense laws. 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. Please complete the form below and we will contact you momentarily. Though Illinoiss law is getting a lot of attention, its not the first state to act. In Ariz. Att'y Gen. Op. Proposition 302 had its origins with the Commission. Supplies that an employee purchases for business purposes can be reimbursed at cost, provided that they are reimbursed pursuant to an accountable plan. The director of the department of administration shall also establish policies and procedures for claiming 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. It can also include, for example: Because the employer only has to cover these expenses when they are work-related, it can lead to disputes over what percentage of these costs are for business use and what portion is for personal use. The voters did not intend this result when they passed Proposition 302. Several states have also enacted their own expense reimbursement laws that either meet or exceed the standard set forth in the FLSA. Because the Commission's recommendation relating to per diem exceeded its authority, that clause of Proposition 302 is void. Read the latest news about Justworks, including company and product announcements, research reports, interviews, and more. The trick to securing greater T&E compliance, Rooting out folks who dont belong on your health plan: A 6-point dependent audit checklist, 3 costly misconceptions about biz email compromise, Collecting via email: 4 must-make moves in your subject line, 5 Tough-to-spot signs that an invoice is fake, 120 Proven Communications Tips for Todays CFO, Handling Nonexempt Employee Pay: Stay Compliant and Avoid DOL Audits, T&E Best Practices: Complete Guide to Ensure Compliance, Payroll Best Practices: 4 Ways to Save Time and Money, Innovative Communications Strategies: An Email Case Study, A 5-part Framework for Successful Workplace Communications. For example, employees may now (and for the foreseeable future) be incurring expenses related to printer paper, pencils, pens, cell phone expenses, home internet bills, etc. In order to qualify for an accountable plan, the employer's reimbursement or allowance arrangement must follow all three of these rules: Business connection: All ordinary and necessary business expenses must have been paid or incurred while performing services as an employee. 41-1104.A commission or agency of this State has only those powers provided by the Arizona Constitution or statute. A 50-state survey summarizing business expense reimbursement requirements and restrictions on wage deductions for business expenses under state law. In Iowa, employers must reimburse employees for expenses within 30 days after the employee submits an expense claim or provide a written justification for refusing the reimbursement within the same time period. For 2023, the standard IRS mileage rates are: 65.5 cents per mile rate for regular business driving. Violating the terms of this agreement can amount to a breach of contract. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. These states are: The requirements in these states are not all the same, however. SeeA.R.S. California remote employees are entitled to reimbursement for all of their reasonable financial job-related losses. Definitely recommend! documentation doesnt exist, is missing or is lost. Streamline and simplify time tracking for you and your workforce. %PDF-1.4
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This may go beyond the business expenses that are generally covered in other states. hYmo6z( $iXmA?xz9>6R./F1eQ#) F%L0Fh\"@&2"``g*BJhDiZXb (2) The geographic area over which the court has authority to decide cases. Employers should also reassess their employee reimbursement policies in order to ensure they remain compliant. 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. The cost of work-related travel is generally a reimbursable expense. x[G_*LeV n]3U!D(n[gAU(CjOZ2e BakerHostetler is here to assist employers navigating the issues surrounding employee expense reimbursement during the COVID-19 pandemic. are aware that these state-level laws are unfolding. $l $$V"AG
$b) y$8 As a nation, we have not yet found it sufficiently important to require reimbursement as a matter of law. 180, 2 (currently codified at A.R.S. [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). SeeHistorical Note, ARIZ. CONST. 2806 0 obj
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Our robust time tracking tool and user-friendly HR platform integrate seamlessly so timekeeping is effortless for you and your team. -]@Gf[5z[`;!yh'ef-Xw}.W D
2-2020). 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. By the time the Commission was created in 1970, Arizona courts had distinguished between "salary" or "compensation" and "reimbursement." art. Your company required or approved the employee to make the expense. 2023 LawServer Online, Inc. All rights reserved. Ann. If the employer establishes a written accountable plan, and the employees submit properly documented expenses under that plan, then the reimbursements shouldnt count as taxable income. Many employers will reimburse an employee who uses their personal vehicle for business at a standard mileage rate. B. Rather, an employer should assess on a case-by-case basis the expenses incurred by an employee and make a reasonable determination as to what the proper level of reimbursement is for the expense claimed. 26 U.S.C. Meal and entertainment costs incurred within the employee's tax home are reimbursable expenses only if the meal or entertainment can be shown to have a clear business purpose. [1] California Labor Code Section 2802 LAB. If the non-elected state employee per diem rate were applied to these legislative leaders, those individuals would have received an actualreductionin money from the State. 2. Baker & Hostetler LLP publications are intended to inform our clients and other friends of the firm about current legal developments of general interest. 41-1904(D). Nonetheless, all three of the arguments in the Publicity Pamphlet regarding Proposition 302 focused exclusively on the salary clause. Building an expense plan will save employers time, confusion, and stress. T5`(N[pTgV
Very helpful with any questions and concerns and I can't thank them enough for the experience I had. Covering work-from-home expenses has become a major concern since the Covid-19 pandemic has pushed many employees into remote work. art. Several states, though, have statutes that detail when an employer has to reimburse an employee for business expenses including those related to working remotely or telecommuting. Section 2802; 820 Ill. Comp. The Arizona Constitution originally stated that "[u]ntil otherwise provided by law, members of the Legislature shall receive seven dollars per day . The employee submitted the expense for reimbursement with proper supporting documentation * (i.e., a receipt) within 30 calendar days of when it was incurred. Consider drafting a plan doing so will likely save everyone time, confusion, and stress. 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. By accessing this site, you consent to the use of cookies and collection of personal information. The employee also must submit business expenses within a reasonable period of time after they occurred. A state employee while traveling on authorized state business shall be reimbursed for actual lodging expenses incurred not to exceed a predetermined amount pursuant to subsection C of this section. An ordinary expense is one that is common and accepted in your industry. Code 62(a)(2)(D) allows an eligible educator to deduct from federal gross income unreimbursed, qualified expenses (e.g., expenses for books, supplies, and computer equipment used in the classroom; expenses incurred during qualified professional development courses). Although previously meals and entertainment could only be deducted by the employer at 50% of the cost, the Taxpayer Certainty and Disaster Relief Act of 2020 allows a full deduction for certain business meal expenses incurred during calendar year 2021 or 2022. Justworks strives to reflect the world we want to see by leading with diversity, equity, and inclusion principles, a guiding mission and vision, and follow-through. art. Employees of the Arizona or federal government Employers whose businesses earn less than $500,000 per year and are not covered by the Fair Labor Standards Act (FLSA). State of Arizona Request for Travel Advance - HRIS The Travel Advance is processed in the HRIS using screen ZR35.2. Lab. The next significant change occurred in 1970 with the passage of Proposition 102, which created the Commission and repealed the former constitutional provisions concerning salary and reimbursement of expenses. 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. An accountable plan is a plan under which allowances or reimbursements paid to employees for business-related expenses are not counted as income and are not subject to withholding. 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. 14 cents per mile for service-related work for charitable organizations.
Ann. The director may change the maximum amounts from time to time and may establish a separate maximum amount for geographical areas of the United States if the director finds that the reasonable cost varies significantly in one or more areas. 25-320) and federal law (42 United States Code, 651 et seq., 45 Code of Federal Regulations, 302.56) and amendments, if any. B. Review SAAM . Your company required or approved the employee to make the expense. Finally! Recently, Illinois modified its Wage Payment and Collection Act to include expense reimbursement rules. %PDF-1.6
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If housing or meals are provided, the reimbursements may be less than, and cannot exceed, the lodging and meal and incidental expense reimbursements provided for pursuant to subsection C. You're all set! [2] D.C. Municipal Regulation Title 7, Section 910.1. If the employer fails to pay these reimbursements, the employee can file a wage and hour lawsuit. 1986); 26 U.S.C. The California Labor Commissioners Office can also cite the employer for violating the law. 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. 3. Many employers will reimburse an employee who uses their personal vehicle for business at a standard mileage rate. Minimum wage regulations apply only to employees. As of Jan. 1, 2019, expenses are considered "necessary expenditures" and reimbursable if: 1. New Hampshire law requires employers to reimburse employees for expenses within 30 days . The Pamphlet focused exclusively on the salary increase, not the per diem limitation. The arguments did not mention the per diem clause. Sign up for our free summaries and get the latest delivered directly to you. endstream
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Legislative reimbursement continued to be governed by then A.R.S. Join Justworks partners to get access to free HR tools, resources, and savings that will allow you to offer your clients more. 41-1104). this Section. Maximum amounts established by the director shall be subject to approval by the joint legislative budget committee. Thats where employee expense reimbursement comes in. Expenses that were properly incurred in the administration of the trust. Even in cases where the reimbursement does count as wages, employees will usually want a detailed breakdown. state laws, and the United States Code. All four members present voted in favor of the salary and per diem recommendations. 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. Copyright 2013-2023 Justworks, Inc. and its affiliates. Shouse Law Group has wonderful customer service. If you need a lawyer for personal injury, auto accidents, immigration, or m, If you need a lawyer rely on the Moore Law Firm. The Legislature retains authority to set its own rates of reimbursement for necessary expenses. 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. Employers should consider sending reminders to employees about submitting reimbursement requests and check in with their employees to ascertain the various types of expenses they may be incurring. Ordinary expense is one that is common and accepted in your industry Advance is processed in the Publicity regarding. Advance - HRIS the Travel Advance - arizona expense reimbursement law the Travel Advance is processed in the Publicity Pamphlet regarding 302... 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Business at a standard mileage rate is processed in the Publicity Pamphlet regarding Proposition 302 focused exclusively the. Diem limitation is getting a lot of attention, its not the per diem recommendations year by year IRS! Charitable organizations this agreement can amount to a breach of contract the end of their reasonable financial job-related.... Same, however reasonable financial job-related losses can also cite the employer fails to these. Reimbursable expense stream 778.217 reimbursement for necessary expenses the arguments in the administration of the arguments in the using... Summarizing business expense reimbursement laws that either meet or exceed the standard IRS mileage rates are: 65.5 per... The terms of this state has only those powers provided by the director shall be subject to approval by director! A breach of contract Arizona Constitution or statute courts have simultaneous responsibility the...