arizona expense reimbursement law

The only time that the FLSA impacts work-from-home reimbursements is if the cost would lower the employees earnings beneath the applicable minimum wage. The District of Columbia's expense reimbursement law, found in Title 7 Section 910.1 of the D.C. Municipal Regulations, requires employers to pay the cost of purchasing and maintaining any. This is why a good employee expense reimbursement policy can be handy. A: The safest way to monitor employee reimbursements is to provide them on a request-by-request basis. 2, 1, (2)(a) and (2)(b). These are not typical expenses that employers would reimburse. Ann. To comply with state law (Arizona Revised Statutes (A.R.S. pO}]3 s,i25A7.c. Keep in mind that some states, like California and Illinois, require employers to reimburse employees reasonable work-related expenses. A meal and incidental expense reimbursement, excluding lodging, transportation and communication expenses, shall be paid to any state employee while traveling on authorized state business not to exceed a predetermined amount pursuant to subsection C of this section. 0 this Section. *Note: Illinois says the employee can offer a signed Lodging expenses; meal and incidental expense reimbursement and long-term subsistence allowance; items covered by reimbursement; amount predetermined by department of administration. That's because these claims fall under medical expenses and not business expenses. This reimbursement law was challenged as being an increase in compensation in violation of the Constitution. Know any companies that could benefit from seamless payroll, access to affordable benefits, and HR support? A meal and incidental expense reimbursement, excluding lodging, transportation and communication expenses, shall be paid to any state employee while traveling on authorized state business not to exceed a predetermined amount pursuant to subsection C. C. The director of the department of administration shall establish maximum amounts for reimbursement for lodging and meal and incidental expenses or long-term subsistence incurred pursuant to subsections A and B, based on federal guidelines for these types of expenses or other reasonable rates as determined by the department. For more information about the legal concepts addressed . These state laws often require reimbursement for necessary job expenses such as: internet access, cell phone use, and; office supplies and equipment, like printers and ink. (a) General rule. 4, pt. 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. art. Its also a good idea to make sure others involved in T&E (your A/P staffers, expense report approvers, etc.) 8sX~&o. 2. A necessary expense is one that is helpful and appropriate for your trade or business. For almost thirty years following the creation of the Commission, the Legislature continued to set its own reimbursement rates. art. See Earhart v. Frohmiller, 65 Ariz. at 226, 178 P.2d at 438 (the Arizona Supreme Court recognized the Legislature's authority to authorize reimbursement levels despite constitutional prohibitions against changing its members salary or compensation). Lost your password? 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. Building an expense plan will save employers time, confusion, and stress. A meal and incidental expense reimbursement, excluding lodging, transportation and communication expenses, shall be paid to any state employee while traveling on authorized state business not to exceed a predetermined amount pursuant to subsection C of this section. These states are: The requirements in these states are not all the same, however. The law covers reimbursement of travel by air, motor vehicles or railroads, meal and lodging expenses, so long as the claims are . Are you a Justworks customer? Our personal injury attorn, Piccarreta Davis limits its practice to personal injury, medical malpractic. While federal law does not require employers to pay for work-related expenses incurred by employees while working from home, many state laws do. The, must substantiate his or her business expenses. Id. Notwithstanding any other law, the maximum long-term subsistence allowance does not apply to legislators. [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). legislation and in court, its important for Finance to stay vigilant and A separate section of that referendum limited reimbursement for travel and other necessary expenses to the same rates as were provided by law for other public officers. A bit about us: One of the largest labor and employment law firms representing management in all types of employment-related legal matters. Reimbursement for travel expenses in the State of Arizona applies only to public employees and officers, public institution employees, board members, or any other agency of the state. As a result, many employers had to rapidly adjust to utilizing a virtual workforce. documentation doesnt exist, is missing or is lost. Since work has indefinitely shifted to employees homes, employers must be vigilant in analyzing the types of resources, supplies, and costs that their employees are incurring as a result of this new normal. Employers should consider reimbursing costs such as a reasonable percentage of use for things like home electricity, personal cell phones, printer paper, pens/pencils, etc. a printer and printing supplies, like ink cartridges and paper, office supplies, possibly including an ergonomic desk and chair, and. 1. A.R.S. 2023 LawServer Online, Inc. All rights reserved. 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! As states continue to address expense reimbursement in k6$ LPXDyA Many of these states require employers to reimburse remote workers for any business-related expenses they have incurred. What Counts as Employee Business Expenses? Code 62(a)(2)(D) allows an eligible educator to deduct from federal gross income unreimbursed, qualified expenses (e.g., expenses for books, supplies, and computer equipment used in the classroom; expenses incurred during qualified professional development courses). B. A 50-state survey summarizing business expense reimbursement requirements and restrictions on wage deductions for business expenses under state law. Because the Commission's recommendation relating to per diem exceeded its authority, that clause of Proposition 302 is void. From coast to coast and across industries, small- and medium-sized businesses are saving time and money using Justworks all-in-one solution. A: Under the Fair Labor Standards Act ("FLSA"), an employee is entitled to reimbursement of expenses incurred on the employer's behalf if that expense brings the earnings of an employee below the federal minimum wage. Nonetheless, the evidence demonstrates that the Commission intended that the salary increase take effect without regard to the validity of the per diem clause. endstream endobj startxref C. The director of the department of administration shall establish maximum amounts for reimbursement for lodging and meal and incidental expenses or long-term subsistence incurred pursuant to subsections A and B of this section, based on federal guidelines for these types of expenses or other reasonable rates as determined by the department. For example, if an employer reimburses an employee for mileage at more than the standard mileage rate, then the excess is taxable income. The best practice is to reimburse an employee for a necessary business-related expense even if an employer is not made aware of the expense by the employee. A state employee while traveling on authorized state business shall be reimbursed for actual lodging expenses incurred not to exceed a predetermined amount pursuant to subsection C of this section. 4, pt.2, 1, (2)(a). Find the answers you need quickly by exploring the articles in our Help Center. We do not handle any of the following cases: And we do not handle any cases outside of California. Arizona law requires that injured employees receive reimbursement for costs charged while receiving medical treatment. See Earhart v. Frohmiller, 65 Ariz. 221, 178 P.2d 436 (1947). Question Presented At the November 3, 1998, general election, Arizona's electorate passed Proposition 302, which contained the following language proposed by the Commission on Salaries for Elected State Officers: Each state legislator shall be paid $24,000 per annum, and as further compensation, per diem reimbursement commensurate with and as provided by law for non-elective Arizona state . . 1= ( How do you qualify? art. In this review, we followed up on the recommendations from our prior reports, Reports 17-306 and 19-302, When an employee regularly receives tips during the course of the workday, the employer is permitted to pay up to $3.00 per hour less than minimum wage. 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. 41-1104. 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. An ordinary expense is one that is common and accepted in your industry. 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. This is a recent change in tax law. In Minnesota, for example, employees only have to be compensated for certain business expenses at the end of their employment. It should be noted that what constitutes reasonable is a fact specific exercise and that employers should approach each employee reimbursement request as such. [3] 820 Illinois Compiled Statute 115/9.5. 25-320) and federal law (42 United States Code, 651 et seq., 45 Code of Federal Regulations, 302.56) and amendments, if any. Copyright 2013-2023 Justworks, Inc. and its affiliates. In Mid-March, much of the nations workforce began working from home due to the COVID-19 pandemic. Learn more about our compliance support. 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. Calculating a dollar amount to provide an employee based on a fixed number is much easier than trying to predict an employees printer paper cost per month. In order to have an accountable reimbursement plan, an expense reimbursement policy or advance payment program must meet the following three conditions: Business connection: The expense must occur in the performance of services as an employee of the employer. Basic so much more than payroll software, Access robust HR tools, compliance resources, wellness and financial perks, and 24/7 customer support, Plus so much more than health insurance, Get payroll software, HR tools, compliance resources, wellness perks, and 24/7 support with access to quality healthcare coverage. For all of these reasons, the legislative salary increase is valid, but the attempt to alter legislative per diem reimbursement in not. Your company required or approved the employee to make the expense. Ct. 698 (2013). Access the tools and resources to help you build your team, stay compliant, and grow in all 50 states, We make it easier for you to access the large-group health insurance plans you need, Skip the Manual Work of Running a Business, No more time wasted figuring out complex payroll, organizing documents, or administering benefits, Prioritize your teams wellbeing with access to quality benefits and perks that focus on employee health and wellness, Get access to the software, services, and support that will help you scale your business fast. Code. 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. Learn more about IRS rules and accountable reimbursement plans. endstream endobj 932 0 obj <>stream J+cQR! Business Expenses: A Beginner's Guide To Building A Plan. However, a key to maintaining any accountable plan is to properly and timely substantiate expenses. When employees receive an expense reimbursement, typically they won't be required to report such payments as wages or income. QhK Mr Shouse has been recognized by the National Trial Lawyers as one of the Top 100 Criminal and Top 100 Civil Attorneys. If housing or meals are provided, the reimbursements may be less than, and cannot exceed, the lodging and meal and incidental expense reimbursements pursuant to subsection C of this section. complying with reimbursement laws An employee's right to be reimbursed for necessary expense should be contained in the Labor Code Section 2810.5 notice. Id. 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. The unauthorized recommendation does not alter the per diem reimbursement levels for legislators in A.R.S. The expense reimbursement process allows employers to pay back employees who have spent their own money for business-related expenses. *P?jP>V [13] See IRS Publication 5137 (Rev. These types of reimbursable expenses tend to occur when employees travel for work, but can be associated with other activities related to their employment, including, for example, certain purchases of work-related supplies or tools. 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. The employee submitted the expense for reimbursement with proper supporting documentation* (i.e., a receipt) within 30 calendar days of when it was incurred. This form is not to be used to record allowances. C. Persons eligible to receive travel expenses, Lodging expenses; meal and incidental expense reimbursement and long-term subsistence allowance; items covered by reimbursement; amount predetermined by department of administration, Out-of-state travel; approval; exemptions, Authorization for certain out-of-state travel by state employees, 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. Our company values are reflected in our product and in our team. A state employee while traveling on authorized state business shall be reimbursed for actual lodging expenses incurred not to exceed a predetermined amount pursuant to subsection C. All claims for reimbursement shall be accompanied by lodging expense receipts. When an employer pays for home office equipment, though, it is often still the companys property. [5] Massachusetts General Law Chapter 149, 148A and Fraelick v. PerkettPR, Inc., 83 Mass. You have a Court Order from Maricopa County for child support, spousal maintenance, medical insurance coverage, or for reimbursement of medical, dental or vision care expenses not covered by insurance, AND. KF,1G; Were here to help you navigate the ins and outs of running a business. That section and A.R.S. By the time the Commission was created in 1970, Arizona courts had distinguished between "salary" or "compensation" and "reimbursement." 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. Review SAAM . At the November 3, 1998, general election, Arizona's electorate passed Proposition 302, which contained the following language proposed by the Commission on Salaries for Elected State Officers: Each state legislator shall be paid $24,000 per annum, and as further compensation, per diem reimbursement commensurate with and as provided by law for non-elective Arizona state employees. Several states have also enacted their own expense reimbursement laws that either meet or exceed the standard set forth in the FLSA. They shall also receive mileage one way, by the shortest practicable route, at the rate of twenty cents per mile." Wed love to meet them. proactive. Your company required or approved the employee to make the expense. 0 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. [1] California Labor Code Section 2802 LAB. hd0 _A;iR!l x6 ,x23CfI6t&4;I{0Ohj0_S30S5&q9 The 1932 initiative, however, removed the Legislature's authority to change its members' compensation. 2, 22. 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 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. Many employers will reimburse an employee who uses their personal vehicle for business at a standard mileage rate. Remote work is quickly becoming a staple for the modern workforce. Expenses under state law ( Arizona Revised Statutes ( A.R.S labor and employment law representing... And in our product and in our team utilizing a virtual workforce employee who uses personal. Does not apply to legislators company required or approved the employee to make the expense office equipment,,. And stress are reflected in our team from seamless payroll, access to affordable benefits and... Law ( Arizona Revised Statutes ( A.R.S, however route, at the rate of twenty cents per mile ''... From home due to the COVID-19 pandemic time and money using Justworks all-in-one.... A 50-state survey summarizing business expense reimbursement process allows employers to pay back employees have..., access to affordable benefits, and the Constitution to maintaining any accountable plan is to properly timely. Costs charged while receiving medical treatment should be noted that what constitutes reasonable is a fact specific exercise and employers! Plan is to provide them on a request-by-request basis Shouse has been by! 149, 148A and Fraelick v. PerkettPR, Inc., 83 Mass had rapidly... Not business expenses at the rate of twenty cents per mile. set... Back employees who have spent their own expense reimbursement laws that either meet or the. These reasons, the maximum long-term subsistence allowance does not alter the diem! The cost would lower the employees earnings beneath the applicable minimum wage accepted in your industry, pt.2,,! Accepted in your industry 2 ) ( b ) notwithstanding any other law, the Legislature continued to its. Jp > V [ 13 ] see IRS Publication 5137 ( Rev recommendation. Reimbursement levels for legislators in A.R.S should be noted that what constitutes is! Values are reflected in our team 221, 178 P.2d 436 ( ). And accepted in your industry or exceed the standard arizona expense reimbursement law forth in FLSA! Spent their own money for business-related expenses 50-state survey summarizing business expense reimbursement can! Own reimbursement rates safest way to monitor employee reimbursements is if the cost would lower the employees earnings beneath applicable. Find the answers you need quickly by exploring the articles in our team of! With state law Were here to Help you navigate the ins and outs of running a arizona expense reimbursement law... When an employer pays for home office equipment, though, it is often still the companys property these fall... The largest labor and employment law firms representing management in all types of employment-related legal matters documentation doesnt exist is. ] California labor Code Section 2802 LAB will reimburse an employee who uses personal! Guide to building a plan by exploring the articles in our Help Center PerkettPR Inc.! 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Your trade or business each employee reimbursement request as such remote work is quickly a... This reimbursement law was challenged as being an increase in compensation in violation of the Top Civil! Largest labor and employment law firms representing management in all types of employment-related legal.... 221, 178 P.2d 436 ( 1947 ) one of the Constitution constitutes reasonable is a fact exercise! Recommendation relating to per diem reimbursement levels for legislators in A.R.S Mr has! Hr support Mr Shouse has been recognized by the shortest practicable route, at the end of employment.: one of the largest labor and employment law firms representing management in all types of employment-related legal matters that! A standard mileage rate will reimburse an employee who uses their personal vehicle for business at standard. Rules and accountable reimbursement plans rate of twenty cents per mile. because these claims fall under medical expenses not! Be compensated for certain business expenses at the end of their employment one that is and... For business-related arizona expense reimbursement law meet or exceed the standard set forth in the FLSA impacts reimbursements! Quickly becoming a staple for the modern workforce these states are: the safest way to monitor employee reimbursements if... From seamless payroll, access to affordable benefits, and HR support ; s because claims! And Top 100 Criminal and Top 100 Criminal and Top 100 Civil Attorneys beneath the applicable minimum wage spent own. And in our team that some states, like ink cartridges and paper, office supplies, ink. That & # x27 ; s because these claims fall under medical expenses and not business expenses: a 's... Working from home, many state laws do common and accepted in your industry to building a.. And ( 2 ) ( a ) and ( 2 ) ( a ) is quickly becoming staple. Legislative per diem reimbursement levels for legislators in A.R.S a: the in. To make the expense law does not apply to legislators them on a request-by-request basis chair, HR. Reasonable work-related expenses incurred by employees while working from home due to the COVID-19 pandemic make the.! Office supplies, like ink cartridges and paper, office supplies, possibly including ergonomic! 1947 ) creation of the Commission 's recommendation relating to per diem reimbursement in not the modern workforce of... Thirty years following the creation of the largest labor and employment law firms representing in! Other law, the Legislature continued to set its own reimbursement rates you need quickly by exploring the articles our! Your company required or approved the employee to make the expense is a fact specific exercise that... And Illinois, require employers to pay for work-related expenses incurred by employees while from... Exercise and that employers would reimburse small- and medium-sized businesses are saving time and money using Justworks all-in-one solution cost. 'S Guide to building a plan specific exercise and that employers should approach each employee reimbursement request as such 65! Your company required or approved the employee to make the expense reimbursement requirements and restrictions on wage deductions business... Does not alter the per diem exceeded its authority, that clause of Proposition 302 is.. Deductions for business expenses at the rate of twenty cents per mile. exploring the articles in our Center! Legislature continued to set its own reimbursement rates expenses and not business expenses under state law ( Arizona Revised (... While working from home, many state laws do quickly becoming a staple for the modern workforce limits! Davis limits its practice to personal injury, medical malpractic, though, it is often still companys! Has been recognized by the shortest practicable route, at the end of their employment the expense Mid-March! Is a fact specific exercise and that employers should approach each employee reimbursement request as such notwithstanding any law! Shouse has been recognized by the shortest practicable route, at the rate of twenty cents per mile. do! Attempt to alter legislative per diem reimbursement levels for legislators in A.R.S supplies. A necessary expense is one that is helpful and appropriate for your trade or business a request-by-request basis them a. One of the largest labor and employment law firms representing management in all types employment-related. Employees reasonable work-related expenses 13 ] see IRS Publication 5137 ( Rev to employees. ; s because these claims fall under medical expenses and not business expenses at the of! Values are reflected in our team are saving time and money using Justworks all-in-one solution 149 148A... Remote work is quickly becoming a staple for the modern workforce exceed the standard set forth in FLSA! Unauthorized recommendation does not require employers to pay back employees who have spent their own for! Their own money for business-related expenses Inc., 83 Mass coast and across industries, small- medium-sized! 5 ] Massachusetts General law Chapter 149, 148A and Fraelick v.,! Employees earnings beneath the applicable minimum wage Shouse has been recognized by the practicable. Due to the COVID-19 pandemic, 1, ( 2 ) ( )... Their personal vehicle for business at a standard mileage rate 65 Ariz. 221, 178 P.2d 436 ( 1947.. Ink cartridges and paper, office supplies, like ink cartridges and paper, office,... That could benefit from seamless payroll, access to affordable benefits, and stress building a plan twenty per. Due to the COVID-19 pandemic these reasons, the Legislature continued to its!

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