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Requiring employees to use personal phones for business use
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Requiring employees to use personal phones for business use
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The recent reamergence of taxing employees for business provided cell phones has caused us undue trouble, but has to be dealt with.
Our company has deemed the cell phones as conveniance. The soluti
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Requiring employees to use personal phones for business use
posted at 7/13/2009 1:19 PM EDT
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Posts: 4
First: 7/13/2009
Last: 7/15/2009
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The recent reamergence of taxing employees for business provided cell phones has caused us undue trouble, but has to be dealt with.
Our company has deemed the cell phones as conveniance. The solution being proposed is to transfer the business cell phones into the individual user name or cancell the cell phone account.
I'm requesting any and comments of the pros and cons of requireing employees to use personal cell phones for business use.
Thank you
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Requiring employees to use personal phones for business use
posted at 7/13/2009 1:30 PM EDT
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Posts: 1103
First: 3/16/2007
Last: 8/19/2011
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Cheap, exploitative and bad job structure are thoughts that come to mind when a company makes a decision to take away a tool from employees. especially over what would amount to just a few dollars in tax exposure to the company.
I have no idea what these cell phones are intended, or were intended, to be used for. I accept not every job needs a company provided cell phone. There will be those positions within many organization that having one is more than convenience; further, telling an employee to supply their own phone to conduct buisiness for the company, business the company should realize a profit from, is simply wrong.
Let me ask you this question. An employee cannot get an aspect of the job done during a normal work period. The customer needs to contact this employee after hours. Are you going to require the employee to divulge a home phone number to a customer so that the employee can be called on their home phone after hours? What if the employee has a teenage child who lives on the phone every evening? what if the employee has a spouse who works from home and the home phone is used in the spouses business? What if the employee has a cell phone and the cell phone minutes are taken up by customers?
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Requiring employees to use personal phones for business use
posted at 7/13/2009 2:09 PM EDT
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Posts: 4
First: 7/13/2009
Last: 7/15/2009
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The phones are more then conveniance. Many employee's job functions keep them away from their desks. The phones are used to reach them by peers, managers, partners, contracters etc... and in some cases send automated alerts in the event of system failures. I am one of these. My personal position is: I've carried two phones for years to keep personal from private as others have. The others have given in, but I have a business of my own and will not share a copy of my records to anyone unless subpoena. I almost went along as well by considering signing another cell contract. But what happens if change jobs, I'm stuck in a contract.
I should add the company does offer to compensate up to a max of 50.00. But again, I can not share phone records. My business sometimes involves non-disclosers and I assure complete confidentialty to my customers.
A recent case with a partner of mine has caused me re-think cells. I had to put up with a his complaintants attourney. I know this is part of doing business, but I'm reluctant at this point.
I also think the company is exposing it's self to too much risk with this policy. With the unproffessionalism of it. Personal phones are personal. Simple things as ring back tones that are appropriate for personal cell phones but inappropriate for business, to all the things you mentioned.
Can the company legally require an ee to provide a cell phone for business use. If so what about ring backs, greetings etc...
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Requiring employees to use personal phones for business use
posted at 7/13/2009 2:26 PM EDT
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Posts: 1103
First: 3/16/2007
Last: 8/19/2011
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You and I are very much on the same page and I too have carried 2 cell phones to avoid the issues you raise.
I do not know a verifiable answer to your bottom line question. My gut tells me no, but then my gut has on occasion been inaccurate. Perhaps Dave Arnold, a frequent poster here, would chime in and share his legal expertise.
If you find out from other sources please share.
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Requiring employees to use personal phones for business use
posted at 7/13/2009 6:43 PM EDT
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Posts: 2146
First: 2/15/2006
Last: 9/14/2011
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I think that California might be the only state that requires specific reimbursement of employee expenses, such as business use of a personal cell phone.
Just as some jobs require specific tools or training, I don't think most states REQUIRE the employer to provide a cell phone even if one is needed. Some states have laws regarding how this expense can/does affect minimum wage.
However, I do agree with both of you that it is best business practice for the employer to provide one when needed.
The best policy I have seen is that all calls on the employer provided cell need to be business related...i.e. the two cell phone issue. Otherwise, the employer/employee are responsible under IRC Tax Code to split out the personal usage amount as a taxable fringe benefit. Now, I am not sure how many employers are actually doing so. I think most are taking a specific % each month. I know my husband's company give him a specific cell allowance and anything over that he pays -- even if the business calls were more than that.
Also by the employer providing the cell, they usually gain the right/access to monitor its usage -- not so with a personal cell used for business purposes. In TX for example "One is that an employer has the right to monitor its own phone system in order to ensure that employees are using the system for its intended purpose."
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Requiring employees to use personal phones for business use
posted at 7/14/2009 2:31 PM EDT
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Posts: 4
First: 7/13/2009
Last: 7/15/2009
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Thanks for comments.
I got a little off track. Legal is important, but not the main concern. What I've been searching for are business policies that make the best of IRS's law, for both the company and the ee.
Solid arguments that a sizable company of several 1000 ee should accept that cell phones are not a convenience, but a necessity. The benefit of cells and providing the cells is an invaluable part of the business. That these cells should be considered valuable and protected assets.
Again I'll use my cell as an example. I received many calls a day from other employees, contractors, etc... When using the company's cell, the caller was greeted with the company's name or a greeting promoting the company. Of course my cell greets callers with my own company's name.
This site may not be the best place for these answers, but reading other posts it looked promising.
Thanks again.
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Requiring employees to use personal phones for business use
posted at 7/15/2009 4:33 AM EDT
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Posts: 2146
First: 2/15/2006
Last: 9/14/2011
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I think you have a lot of pros already:
(1) employee availability -- personal phones can get shut off, left in the car, etc.
(2) employer can control/monitor usage
(3) employer can require specific usage policies -- like how the phone is answered, who the phone number is given to, etc.
(4) Keeps business separate from personal life
(5) If the employee leaves and clients/customers have the cell number, if the phone was turned in, that cell number belongs to the company -- NOT the employee. So you don't have an ex-employee answering company calls. Who knows what they would say or do?
Cons:
(1) expense to the company
(2) IRS fringe benefit tax tracking if allowed to use for personal benefit
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Requiring employees to use personal phones for business use
posted at 7/15/2009 3:32 PM EDT
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Posts: 4
First: 7/13/2009
Last: 7/15/2009
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Thanks again for comments. This is a nice site, helpful members.
Unfortunatly these arquements and more have been presented.
Guess we'll have to see how it plays out.
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