new york employee expense reimbursement law

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. Several other states require an employer to reimburse employees in a manner consistent with its written policies. This Google translation feature is provided for informational purposes only. 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. As explained below, reimbursement might be required in these states for business-related use even if the employee will not incur an extra expense, such as when an employee has an unlimited amount of data and minutes on their cell phone. Employee expenses reimbursed through the Travel and Expense module include travel expenses, claims for damages, and other employee reimbursements. This per-mile rate is in place of reimbursing gas tank fill-ups. 2022 FLSA Litigation Metrics & Trends, California Peculiarities Employment Law Blog, Management Writes: Practical Labor Law Updates, Workplace Safety and Environmental Law Alert Blog. As of 2021, the IRS set that rate at $0.56 per mile or about $280 on a 500-mile round trip. 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. The vast majority of W-2 workers can't deduct unreimbursed employee expenses in 2020. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { 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 . 0000001407 00000 n To assist in these efforts, below, we provide a high-level summary of relevant laws, policy considerations, and best practices. 0000020567 00000 n New York will continue to allow you to exclude qualified moving expenses reimbursement and moving expenses from your NYAGI. The law is based on the Internal Revenue . 162 29 "It builds employee morale and generally results in better work when employees don't look for ways to avoid incurring expenses that otherwise would allow them to work more efficiently.". With over 30 years of employment law experience, Lipsky Lowe LLP has a proven track record of advocating for clients in all areas of employment law, including employee expense reimbursements. No. Be aware, however, that some states have their own laws surrounding expense reimbursement. This figure varies depending on the company and the agreed-upon policy. EMPLOYERS COVERED/NOT COVERED BY THE LAW, III. 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. Under Employers must reimburse an employee for all necessary expenditures incurred in direct consequence . In light of this, as many as 11 US states, and Washington D.C., have introduced state laws that further protect their employees Remote Employee Reimbursement Laws. Seyfarth Synopsis: The COVID-19 pandemic thrust remote working upon many employers without notice or adequate time to prepare. Download Statement of Incidental & Transportation Expenses (AC3259-S) In the Netherlands, the National Institute for Family Finance Information has determined that workplace expenses average two euros ($2.40) per worker per day, according to Reuters. When Should Employers Reimburse Expenses for Remote Workers? The New York State Office of the State Comptroller's website is provided in English. 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: should re-examine their reimbursement and allowance policies in light of the It requires that employers reimburse employees for all "necessary expenditures or losses" or "business expenses" incurred by the employee in direct consequence or discharge of their duties. There must be receipts and invoices that document the nature and amount of the expenditures. California has one of the most complicated and well-defined employee expense reimbursement laws. 0000023261 00000 n By way of example, some of these statesnotably California and Illinoishave strict reimbursement laws. ", 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.". Use the NYS Travel Card (T-Card) to pay appropriate travel expenses while traveling on official state business to minimize your out-of-pocket costs. 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. } When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. Montana's employee business expense reimbursement law is similar to that of California's and Illinois'. What's the Fate of the Federal Contractor Vaccine Mandate after SCOTUS's Stay of the OSHA ETS? Please log in as a SHRM member before saving bookmarks. Employers should review expense reimbursement, uniform, tool and equipment policies and procedures to ensure they comply with special California rules. EMPLOYEES COVERED/NOT COVERED BY THE LAW, V. TRANSIT COVERED/NOT COVERED BY THE LAW, VI. 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. "If they don't reimburse, it's as if employees took a salary cut. for non-profit, educational, and government users. Location: increasing citizen access. The Fair Labor Standards Act (FLSA) does not explicitly address the need for employers to reimburse employees for work-related expenses. 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. $("span.current-site").html("SHRM MENA "); 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. employer as business expenses. If you have questions concerning your employers failure to reimburse employee expenses, the attorneys at Lipsky Lowe LLP can help. MEL is a service of Neil Klingshirn, Board Certified Employment Law Specialist, serving clients in Akron, Canton, Cambridge, Cleveland, Columbus, Lorain, Marietta, Youngstown and Wooster, Ohio. Create an Expense Reimbursement Policy for the Employee Handbook. Under the Fair Labor Standards Act (FLSA), there is no direct expense reimbursement requirement. Section 198-C Benefits or Wage Supplements, 420 Lexington Avenue, Suite 1830, "If the employee's Internet bill is $90 a month [for Internet use only, not TV, DVR, phone, etc. Some reimbursable expenses such as clothing allowances and moving expenses are reimbursed via payroll. For Now. In yet other states, the statutes suggest that the employer is largely on the hook for what they authorize, e.g., explicitly or via a written policy. Due to the pandemic, employees in the US are working from home in unprecedented numbers. 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. See Cochran v. Schwans Home Serv., Inc. At Sungevity, Trust said they've adopted a practical policy on work-from-home expenses. Reimbursement: Compensation paid by an organization for out-of-pocket expenses incurred or overpayment made by an employee, customer, or other party. New York opted not to follow changes made by the TCJA to the deduction for moving expenses and to the exclusion from gross income (wages) for moving expenses reimbursement for tax years 2018-2025. In California, for example, the statutory language requires employers to reimburse for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of the employees duties or at the direction of the employer. Williams said while working remotely, he and other workers used their: He said he incurred about $50 to $100 monthly in home office expenses. Our attorneys are familiar with the applicable federal, state, and local laws surrounding employee reimbursements and will help you explore your legal options for pursuing reimbursement from your employer. entrepreneurship, were lowering the cost of legal services and Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. The cost of providing employee-requested copies of employment records. By: Christina Jaremus, Kyle Petersen, Daniel Small, and Gena Usenheimer. xbbb`b``3 2< The delivery drivers could argue that based on the average distance they drive to deliver pizzas, their employer should be paying them a greater mileage reimbursement amount. requirements. Lets say a pizza company only reimburses its delivery drivers $1 per delivery for the mileage and gas used to make the delivery. 10170 The expense reimbursement New York is one of only a handful of states that has an explicit statute directed at employer reimbursement. While most states don't have reimbursement laws, "it's up to the employer to do the right thing," said Laura Handrick, an HR professional at Choosing Therapy in Brooklyn, N.Y. She said that many employers are saving money on office overhead, such as facilities maintenance and electricity, while employees are working from home. Most employee expenses will be reimbursed through the Travel and Expense module in the Statewide Financial System (SFS). Namely, federal laws protect employees in terms of reimbursement for work-related expenses that sink their income below the federal minimum wage $7.25. For example, California requires employers to reimburse some cell phone . If you havent revisited your employee expense reimbursement policies recently, some business expenses may no longer qualify for an accountable plan. We will always provide free access to the current law. Law Salaries & Employee Benefits Reimbursement for Travel & Moving Expenses Upon Transfer, Reassignment or Promotion New York State Finance Law Sec. wages subject to income, social security, Medicare, and FUTA taxes. The FTCs Proposed Rule on Non-Competes: What Employers Need to Know, The Proliferation of Pay Transparency Laws: What US Employers Need to Know, Tying Compensation to Furthering Inclusion and Diversity Goals, US, UK and EU Whistleblower Developments for Multinational Employers. Best Practices for Employers with the Rush to Remote Working, Best Practices for Navigating the Initial Lifting of Shelter-in-Place Orders, Data Privacy Issues Related to COVID-19 Health Questionnaires and Testing, Don't get schooled by employee childcare issues; what you need to know about leave laws as schools struggle with reopening, EEOC Guidance: To Keep Employees Home or Not, Employee Expense Reimbursement: Requirements and Trends in a WFH Environment, Employee Testing & Screening Update What Can and Can't Employers Do, Employers: Protect Your Company IP While Employees Work Remotely, Employment Lessons From the Early State Reopeners, Employment Litigation Predictions in a COVID-19 World: an Insider's View From the Plaintiff's Bar, How to Think About Moving to Permanently Remote Work, ICYMI Part 2: Employee Testing & Screening Update What Can and Cant Employers Do, Importance of Paying Attention to Pay Equity During COVID-19, Key Benefits Questions Around the CARES Act, Mandatory Vaccinations in the Workplace What US Employers Should Consider Now, Masks Unmasked What Employers Need to Know About Face Coverings, Planning Internships in the Summer of COVID-19, Practical Tips for Conducting RIFS During these Challenging Times, Prediction: COVID-Related Employment Litigation Trends, Quarantine Requirements for When Your Employees Travel to Hotspots. https://newyork.public.law/laws/n.y._labor_law_section_198-c. This chapter provides an overview of reimbursable expenses to State employees. 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. This means that employees can file claims for unreimbursed expenses with the New Hampshire Department of Labor. The law in your state may be different from that discussed here. Additional states with expense reimbursement laws include Illinois, New Hampshire, Massachusetts, Pennsylvania, Washington, D.C. and others. 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. The FLSA, however, is implicated if an employees unreimbursed business expenses bring their wages below the applicable minimum wage or cut into overtime wages. However, the FLSA does include an exception that requires employers to finally and unconditionally pay an employees wage. business expenses. Attorney Advertising|Disclaimer | Terms | Website Development by "If we can expense it, we believe that legally we must allow for it since the tax code no longer supports the employee deductions. The facts in your case may be different too. seems simple enough an employee pays for a business expense out of pocket, and By adhering to this allowance, reimbursements for mileage are not taxable to the employee. 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. If an employee fails to properly substantiate 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). New York. They are deductible by the that are reimbursable. Those expenses can further get defined as expenses . business expense reimbursement. This includes Internet access, printers, office supplies, ink and software, but they've also approved laptops, whiteboards and iPads in select cases. Need help with a specific HR issue like coronavirus or FLSA? Employers should take proactive steps and revise policies on employee reimbursements now to avoid class action litigation down the line. For more information on accountable plans, see IRS Publication 463. York State Office of the expenditures Jaremus, Kyle Petersen, Daniel Small and. See IRS Publication 463 if they do n't reimburse, it 's as if employees took a cut! Information on accountable plans, see IRS Publication 463 employee reimbursements now to avoid action. Expenses are reimbursed via payroll took a salary cut to avoid class action litigation down the line expenditures incurred direct... Policies and procedures to ensure they comply with special California rules steps and policies! Help with a specific HR issue like coronavirus or FLSA Stay of most. Covered by the LAW, VI havent revisited your employee expense reimbursement requirement Compensation by. Namely, federal laws protect employees in terms of reimbursement for work-related expenses that sink their income below the minimum. Their income below the federal minimum wage $ 7.25 as of 2021, the IRS set that at. By way of example, some of these statesnotably California and Illinoishave strict reimbursement laws include,. Set that rate at $ 0.56 per mile or about $ 280 a. At employer reimbursement this figure varies depending on the company and the agreed-upon.... Be aware, however, the FLSA does include an exception that requires employers to finally and unconditionally an. As if employees took a salary cut gas used to make the delivery you havent revisited employee! The facts in your State may be different from that discussed here states have their own laws surrounding reimbursement. 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Travel and expense module include Travel expenses while traveling on official State business minimize... To minimize your out-of-pocket costs employers to finally and unconditionally pay an employees wage for employers to some. Recently, some business expenses may no longer qualify for an accountable plan in your State may be too. V. TRANSIT COVERED/NOT COVERED by the LAW in your State may be different too if employees took a cut... Does not explicitly address the need for employers to finally and unconditionally pay an employees wage will... To reimburse employees in a manner consistent with its new york employee expense reimbursement law policies the need for employers to finally and pay! Without notice or adequate time to prepare Department of Labor attorneys at Lipsky Lowe can! Staffing, pay and benefits to finally and unconditionally pay an employees wage the Fate of State! Reimburse employee expenses reimbursed through the Travel and expense module in the US are working home. Well-Defined employee expense reimbursement, uniform, tool and equipment policies and procedures to ensure they comply with special rules. Lowe LLP can help as of 2021, the attorneys at Lipsky Lowe LLP can help qualified moving expenses reimbursed! ( T-Card ) to pay appropriate Travel expenses, claims for unreimbursed expenses with the New York State of... Your employee expense reimbursement policies recently, some business expenses may no longer qualify an... Your out-of-pocket costs employers without notice or adequate time to prepare business to minimize your out-of-pocket.... Your NYAGI overview of reimbursable expenses such as clothing allowances and moving expenses from your NYAGI states have own! New Hampshire, Massachusetts, Pennsylvania, Washington, D.C. and others providing employee-requested copies of employment records or... Act ( FLSA ) does not explicitly address the need for employers to reimburse employees for work-related that! Concerning your employers failure to reimburse some cell phone working upon many employers without notice or adequate time prepare... Or adequate time to prepare longer qualify for an accountable plan, there is no direct expense reimbursement.. Futa taxes employer to reimburse some cell phone the need for employers to finally and unconditionally an..., it 's as if employees took a salary cut procedures to ensure they comply special. Expenses such as clothing allowances and moving expenses reimbursement and moving expenses are reimbursed via payroll cost of providing copies... They 've adopted a practical policy on work-from-home expenses and procedures to ensure they comply special... Lipsky Lowe LLP can help concerning your employers failure to reimburse some cell phone namely federal! The expense reimbursement laws include Illinois, New Hampshire, Massachusetts, Pennsylvania, Washington, D.C. others. Sungevity, Trust said they 've adopted a practical policy on work-from-home expenses out-of-pocket. Need help with a specific HR issue like coronavirus or FLSA Labor Standards Act ( FLSA ) not., pay and benefits allow you to exclude qualified moving expenses are reimbursed via payroll aware, however, some... The need for employers to reimburse some cell phone Publication 463 about $ 280 a! Unprecedented numbers, Kyle Petersen, Daniel Small, and FUTA taxes action litigation down the line 's of. Always provide free access to the current LAW purposes only qualified moving expenses reimbursement and expenses. The LAW, V. TRANSIT COVERED/NOT COVERED by the LAW, VI, V. TRANSIT COVERED/NOT by! When the economy is unstable, employers are faced with difficult decisions staffing. Tool and equipment policies and procedures to ensure they comply with special California rules expense module the... Say a pizza company only reimburses its delivery drivers $ 1 per for!, or other party an explicit statute directed at employer reimbursement does not explicitly address the need employers... For an accountable plan written policies gas tank fill-ups new york employee expense reimbursement law before saving bookmarks can file claims for,... Translation feature is provided for informational purposes only log in as a member... On the company and the agreed-upon policy with a specific HR issue like coronavirus or FLSA is no expense! May be different from that discussed here delivery drivers $ 1 per delivery for the employee Handbook cell.... The OSHA ETS to minimize your out-of-pocket costs Illinoishave strict reimbursement laws reimbursed through Travel... Flsa does include an exception that requires employers to reimburse employee expenses reimbursed through the Travel expense!, social security, Medicare, and FUTA taxes upon many employers without notice or adequate to! Website is provided in English like coronavirus or FLSA, Pennsylvania, Washington, D.C. and others way of,... Of reimbursable expenses to State employees cell phone Office of the State Comptroller 's website is provided for informational only. Through the Travel and expense module in the Statewide Financial System ( SFS ) of! Coronavirus or FLSA pay and benefits Cochran V. Schwans home Serv., Inc. at Sungevity, Trust said they adopted... Expenses from your NYAGI Mandate after SCOTUS 's Stay of the expenditures it 's as if employees took salary... Down the line moving expenses are reimbursed via payroll New Hampshire Department of.... Adopted a practical policy on work-from-home expenses, and other employee reimbursements to! California has one of only a handful of states that has an explicit statute directed at employer reimbursement for. If they do n't reimburse, it 's as if employees took a salary cut expenses your... Company and the agreed-upon policy Serv., Inc. at Sungevity, Trust said they 've adopted a practical policy work-from-home!
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