arizona expense reimbursement law

That's because these claims fall under medical expenses and not business expenses. There is no federal law that requires employers to reimburse their employees for employment-related expenses, and few state laws do so, either. Because one of the consequences of that recommendation could have been to dictate the length of the legislative session, the Attorney General concluded that the Commission had exceeded its limited authority to set salaries. Your company required or approved the employee to make the expense. For 2023, the standard IRS mileage rates are: 65.5 cents per mile rate for regular business driving. ." 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. Reimbursement of expenses A. Federal law does not require employers to reimburse employees for expenses incidental to carrying on the employer's business. The per diem clause contained in the Commission's recommendation was invalid because it exceeded the Commission's authority. [1] California Labor Code Section 2802 LAB. J+cQR! Indiana Petition for Waiver of Reinstatement Fee, CFR > Title 4 > Chapter I > Subchapter A - Personnel System, U.S. Code > Title 2 > Chapter 11 - Citizens' Commission On Public Service and Compensation, U.S. Code > Title 39 > Part II - Personnel, U.S. Code > Title 5 - Government Organization and Employees, Florida Statutes 112.532 - Law enforcement officers' and correctional officers' rights, Florida Statutes > Chapter 110 - State Employment, Florida Statutes > Chapter 111 - Public Officers: General Provisions, Florida Statutes > Chapter 112 - Public Officers and Employees: General Provisions, Texas Civil Practice and Remedies Code Chapter 108 - Limitation of Liability for Public Servants, Texas Government Code > Title 6 - Public Officers and Employees, Texas Government Code > Title 8 - Public Retirement Systems, Texas Local Government Code > Title 5 - Matters Affecting Public Officers and Employees, Texas Vernon's Civil Statutes > Title 109 - Pensions. As if IRS regulations werent enough to keep up with, some states are adding their own expense reimbursement laws that your staffers will have to comply with, too. Nonetheless, all three of the arguments in the Publicity Pamphlet regarding Proposition 302 focused exclusively on the salary clause. Code. Those expenses can further get defined as expenses . What Counts as Employee Business Expenses? Psst interested in learning more about creating an accountable expense plan? However, a key to maintaining any accountable plan is to properly and timely substantiate expenses. 14 cents per mile for service-related work for charitable organizations. The arguments did not mention the per diem clause. In 1932, by initiative, the electorate amended the constitution and increased legislators' daily compensation to eight dollars. What may be reasonable in one instance might not be in another. 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. They shall also receive mileage one way, by the shortest practicable route, at the rate of twenty cents per mile." 0 A second member expressed his view that, if the Commission and the public were in error in adopting the per diem clause, the Legislature could adjust the per diem in any way it wanted. 41-1104. The 1932 initiative, however, removed the Legislature's authority to change its members' compensation. D. The director of the department of administration shall establish in the state accounting manual uniform procedures by which amounts less than the maximum lodging and meal and incidental expense reimbursement amounts may be claimed by a person who is in travel status for less than a full twenty-four-hour period or by a person who does not provide lodging receipts. Monthly tips on running a business in your inbox. %PDF-1.4 % The Commission hasnoauthority to venture into other areas, such as recommending that Arizona voters approve entering treaties with foreign countries, imposing new taxes, or altering legislative per diem rates. ARIZ. CONST. 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! h233Q0Pw/+Q0L)63 )I0i1P *V? U? It should outline all of the business-related expenses that an employee can get reimbursed for. Make an impact on growing small businesses. These states are: The requirements in these states are not all the same, however. {W%iw QT4Ta C5,m= An employer will want to maintain records as to reimbursements made to employees and the rationale behind those reimbursement amounts. reimbursement obligations employers might not have had to think about before COVID-19. 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. However, some states, such as California and Illinois, do require these reimbursements. Even with an accountable plan, there are some things to look out for. Former ARIZ. CONST. 38-624 - Lodging expenses; meal and incidental expense reimbursement and long-term subsistence allowance; items covered by reimbursement; amount predetermined by department of administration from 2020 Arizona Revised Statutes Often, an employer will be able to deduct those reimbursements, but the deduction amount may be limited. It's important to note that these exemptions exist to accommodate unique working arrangements and small business operations. Code of Federal Regulations Title 47. If you need a lawyer for personal injury, auto accidents, immigration, or m, If you need a lawyer rely on the Moore Law Firm. This is why a good employee expense reimbursement policy can be handy. Code. With unprecedented numbers of employees working remotely in the wake of the COVID-19 pandemic, employers are increasingly faced with employee concerns about the costs associated with remote work. Employers should also reassess their employee reimbursement policies in order to ensure they remain compliant. As of Jan. 1, 2019, expenses are considered "necessary expenditures" and reimbursable if: 1. 2-2020). *P?jP>V If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor. [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). Browse tips on what you need to launch, run, and scale a business successfully, from healthcare to hiring, filing taxes, or just creating a great place to work. Authorship Credit:Carter Norfleet and Shareef Farag. Ann. 708 0 obj <>stream legislation and in court, its important for Finance to stay vigilant and Your company required or approved the employee to make the expense. Employees who have had to set up their own workspace at home are not able to claim the home office deduction. 949 0 obj <>/Encrypt 929 0 R/Filter/FlateDecode/ID[<6BDF1CF33331E94D9CD43616C7FC6BA5><61B2D104DCFA2B4EB4BD935421B87E8D>]/Index[928 203]/Info 927 0 R/Length 109/Prev 84083/Root 930 0 R/Size 1131/Type/XRef/W[1 2 1]>>stream endstream endobj 929 0 obj <>>>/Filter/Standard/Length 128/O(5 V:D&zzAo;d$c5)/P -1052/R 4/StmF/StdCF/StrF/StdCF/U("5YiI4 )/V 4>> endobj 930 0 obj <>/Metadata 22 0 R/Names 951 0 R/PageLayout/OneColumn/Pages 926 0 R/Perms/n]KBDw)/Name(cCY]!5@X3U@Y}5FT\(_y)/Prop_Build<>/Filter<>/PubSec<>>>/Reference[<>/Type/SigRef>>]/SubFilter/adbe.pkcs7.detached/Type/Sig>>>>/StructTreeRoot 34 0 R/Type/Catalog>> endobj 931 0 obj <>stream 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. Download your free copy of Business Expenses: A Beginner's Guide To Building A Plan to find the helpful advice you're looking for. All claims for reimbursement shall be accompanied by lodging expense receipts. Business Expenses: A Beginner's Guide To Building A Plan. With Resourceful Finance Pro arriving in your inbox, you will never miss critical stories on accounting, benefits, payroll & employment law strategies. d100'h` 5 The, must substantiate his or her business expenses. What counts as necessary creates a huge and costly exposure, as your company could potentially have to pay for a lot more. For almost thirty years following the creation of the Commission, the Legislature continued to set its own reimbursement rates. Copyright 2013-2023 Justworks, Inc. and its affiliates. Its also a good idea to make sure others involved in T&E (your A/P staffers, expense report approvers, etc.) LawServer is for purposes of information only and is no substitute for legal advice. endstream endobj 2807 0 obj <>/Metadata 97 0 R/OCProperties<>/OCGs[2821 0 R]>>/PageLabels 2798 0 R/PageLayout/OneColumn/Pages 2800 0 R/PieceInfo<>>>/StructTreeRoot 120 0 R/Type/Catalog>> endobj 2808 0 obj <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB]/Properties<>/XObject<>>>/Rotate 0/StructParents 0/Type/Page>> endobj 2809 0 obj <>stream -Q3z78Zkx6 This may go beyond the business expenses that are generally covered in other states. A: With employees having historically worked in an office environment, many of the supplies and resources they utilized to complete their job duties were provided for by the employer (i.e., printer paper, pens/pencils, computers, electricity, computer monitors, internet, phones, etc.) These state laws often require reimbursement for necessary job expenses such as: Covering work-from-home expenses has become a major concern since the Covid-19 pandemic has pushed many employees into remote work. Copyright 2013-2023 Justworks, Inc. and its affiliates. art. this Section. If the requested file does not load in a new window, click here. 115,9.5; Mont. However, because of the new normal of working from home, employers must vigilantly analyze the types of expenses their employees are incurring for business-related purposes and provide reimbursement accordingly. For all of these reasons, the legislative salary increase is valid, but the attempt to alter legislative per diem reimbursement in not. 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. The voters did not intend this result when they passed Proposition 302. It is important to recognize that any attempt to implement the unauthorized per diem clause could actually reduce the money that legislators currently receive, in direct contravention of the desire to enact a salary increase. 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. 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. 8sX~&o. The current travel and reimbursement rates for legislators are different from those recommended by the Commission in Proposition 302. 2894 0 obj <>stream endstream endobj startxref Labor Section 23-1062. . )bdpw]o*)w1@3T l7+96CNxbjQg(@DkV`02(6CHzrd+=}eN^ eBhx.D?2:6dt{w5D&9?bDe M7`ih3lV C. 39-2-701. This rate applies to both cars and trucks and fluctuates year by year. The extent of these expenses will depend on the employees job duties. The employee submitted the expense for reimbursement with proper supporting documentation * (i.e., a receipt) within 30 calendar days of when it was incurred. 1130 0 obj <>stream are aware that these state-level laws are unfolding. It depends on the situation. 61 (a)(1), whereas payments such as per diem that are intended to reimburse an employee for expenses incurred on behalf of the employer, are generally considered to be nontaxable. As required by law, we conducted an annual review of per diem compensation and expense reimbursement payments to members of State boards, commissions, councils, and advisory committees (collectively referred to as boards) for fiscal year 2019. A: Generally, the burden is on the employer to make sure employees are getting reimbursed for business-related expenses. If the employer fails to pay these reimbursements, the employee can file a wage and hour lawsuit. This can be tricky, however, as the employer must be sure to document/identify the amount of compensation attributable to the expense actually incurred. California courts, for example, have steadily ruled that companies should pay a reasonable percentage of employees personal cell phone bills if theyre used for work purposes. 4, pt. Get to know our founding story and meet the Justworks Leadership Team. 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. A: Alaska, California, Illinois, Indiana, Iowa, Kentucky, Massachusetts, Michigan, Minnesota, Montana, New Hampshire, New York, North Dakota, Pennsylvania, South Dakota, and Washington, DC all have enacted statutes which bear on expense reimbursement. movement? Even in cases where the reimbursement does count as wages, employees will usually want a detailed breakdown. 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. Page 16 of IRS Publication 15, (Circular E), Employer's Tax Guide, states that expense reimbursements do not have to be included in an employee's wages if the business has an accountable plan. D.C. Municipal Regulation Title 7, Section 910.1, Massachusetts General Law Chapter 149, 148A, Fraelick v. PerkettPR, Inc., 83 Mass. attorneys fees incurred by the employee in recovering reimbursement for other expenses. The Commission's recommendations became ballot Proposition 302, which the voters passed in November 1998. 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. (2) The geographic area over which the court has authority to decide cases. In 1947, the Legislature enacted a law that allowed legislators to be reimbursed for their actual and necessary expenditures for subsistence and lodging. [3] 820 Illinois Compiled Statute 115/9.5. By the time the Commission was created in 1970, Arizona courts had distinguished between "salary" or "compensation" and "reimbursement." The standard mileage rate is set by the IRS each year. Section 2802; 820 Ill. Comp. What are some examples of ordinary and necessary expenses that would require employer reimbursement? Our personal injury attorn, If you need a lawyer for personal injury, auto accidents, immigration, or m. It's best to have a written employee expense reimbursement policy in your employee handbook to ensure your organization has an action plan for remote workers. In order to reimburse employees for expenses, its vital for an employer to have an accountable plan. Salary: $150,000 - $220,000 per year. -]@Gf[5z[`;!yh'ef-Xw}.W D 41-1104.(1). So, are reimbursements taxable? The unique manner in which Proposition 302 was developed requires review of the Commission's intent as well as the intent of the electorate to determine whether severance applies.A related question is whether the invalidity of the Commission's per diem recommendation negates the voters' approval of a legislative salary increase in Proposition 302. In addition, if any expenses are paid in excess of IRS limitations, then the excess is taxable income. F Please note: Our firm only handles criminal and DUI cases, and only in California. 0 The lengthy history distinguishing salary from reimbursement (including per diem) in Arizona leads to the conclusion that the Commission has constitutional authority to recommendonlysalary changes. But itll be important to watch as courts decide how to interpret these laws and make case-by-case judgment calls. at 2(b). 2, 1, (2)(a) and (2)(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. Ditch the spreadsheets for HR software & tools weve built from the ground up. Our mission is to help entrepreneurs and businesses grow with confidence. Read the latest news about Justworks, including company and product announcements, research reports, interviews, and more. Copyright 2023 Shouse Law Group, A.P.C. For example, as demands on the Legislature have increased in recent years, legislative leaders have found it necessary to spend more time working at the Legislature than ever before. Detailed Instructions for the Form GAO-502, State of Arizona Employee Expense Reimbursement Form .

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