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Cell Phone Usage In Your Company

Cell phone usage in your company

  • The IRS has technically defined de minimus as $100 or less.
  • If you are a company who provides a company cell phone for your employees to use, you do not have to worry about adding that to their W-2.
  • You do not need to tax them on that as compensation.

 

Hey everyone; it’s Shauna, the Tax Goddess. We are at the peak of tax season. We’ve got the deadline coming on the 17th this year. Today I wanted to talk about cell phone usage for you or for your employees within the company. If you have a company cell phone, so the company actually purchased the cell phone, pays for the plan, and your employees are allowed to use the cell phone, let’s say for very small personal calls such as making a call to the mom or whatever it is, you actually do not have to put that on their W-2, or give them compensation. A taxable compensation for that as long as it’s de minimus.

The IRS has technically defined de minimus as $100 or less. If you are a company who provides a company cell phone for your employees to use, you do not have to worry about adding that to their W-2.

I’m not sure what else to say today so I’m going to let you guys go. I hope you’re having a wonderful day, and happy tax season. I’ll see you guys on the other side. All right, bye.

 

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PLEASE NOTE: As of late Aug 2018 there was a proposed law change that would disallow a double deduction for these charitable credits at the federal level for contributions made after Aug 2018. You are still eligible for the AZ state tax credits as the change would only impact your ability to take them as charity donations at the federal level.
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