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Cell Phone charges & Other Fringe Benefits

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What is the name of your state (only U.S. law)? California

Hello! I've gotten some very good advice and information from this site for personal stuff, and recently a question has come up at work that I thought I would pose here as well.

So I work in the accounts payable department for a company in California that has very close ties to a state agency (our company was created from the agency, but is a private entity; don't ask me what the actual logistics of the relationship is, I just know that I work with a lot of State employees).

Anyway, the issue is this: we are trying to get our Accounting department IRS compliant, by determining the taxability (sp?) of certain "fringe benefits" (i.e. cell phone, laptop, etc.). Obviously, since our company hasn't been worried about that in the past, employees aren't going to be too keen on these having withholdings taken all of a sudden, so I'm hoping someone has some advice on the best way of handling this. My boss has asked each of us to ask someone that maybe has a company cell phone to see how their company handles it, just to get some ideas as to a game plan. Since I don't really know anyone in that catagory, I thought I'd ask here!

Anyway, I appreciate any info that is offered. :D
 


Beth3

Senior Member
we are trying to get our Accounting department IRS compliant, by determining the taxability (sp?) of certain "fringe benefits" (i.e. cell phone, laptop, etc.). If these are provided to employees as work tools, they're not fringe benefits and they're not taxable - any more than you'd tax employes for the desk and telephone they're using. I think the boss needs to consult with a professional accounting firm for some expert advice - and the sooner the better!
 
Well I worded that wrong I think...it's just for personal use of these things. I've mentioned to my boss that personal use of a laptop would be hard to quantify, but personal use of the cell phone I think is the main thing. I don't know...this is going to be a nightmare I think. Thanks.
 

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