Commentary

4.8 Employer-provided cell phone

United States
United States | Commentary

4.8 Employer-provided cell phone

United States | Commentary

4.8     Employer-provided cell phone

An employer is able to exclude from taxable wages the value of a business use cell phone provided to an employee where the primary purpose is for non-compensatory business reasons.

Personal use of a cell phone provided for this purpose is deemed to be de minimis (4.6) and not taxable to the employee. The purpose is determined to be non-compensatory if the employer's reasons include:

  1.  

    •     the employer's need to be able to contact the employee at all times due to potential work-related emergencies

  2.  

    •     the employee has a requirement to be

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial