As most small businesses cannot afford, and therefore do not provide a cell phone to their employees, more often than not, a small business owner will provide reimbursement or a cash allowance for the employees' work-related use of their personal cell phone. The IRS in turn recognizes this ...
AUTOMOBILE ALLOWANCE AND CELL PHONE. The Company shall provide the Executive with an automobile allowance of $500 per month, cellular telephone, and reimburse reasonable automobile expenses including auto insurance, repairs, maintenance, gasoline charges, etc. via receipted expense reports. Sample 1 Sa...
If any of them are not met, then the reimbursement is taxable income. Additional reading For more information, refer to these articles: Cell Phone Stipend: A Win-Win Solution for Employers and Employees –by Benepass, a company that helps distribute employee benefits. Cell Phone & Internet ...
The ultimate realization of our deferred tax assets depends upon generating sufficient future taxable income prior to the expiration of the tax attributes. In assessing the need for a valuation allowance, we must project future levels of taxable income. This assessment requires significant judgment. ...