arizona expense reimbursement law

office supplies and equipment, like printers and ink. The commissioners were the architects of the language and intended that the salary increase be allowed to stand even if the per diem clause were invalid. Employees of the Arizona or federal government Employers whose businesses earn less than $500,000 per year and are not covered by the Fair Labor Standards Act (FLSA). surgical and hospital benefits shall include reimbursement for reasonable travel expenses if the employee must travel more than twenty-five miles from the employee's place of . Q ta$DLatBi$`1 #,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. State of Arizona Request for Travel Advance - HRIS The Travel Advance is processed in the HRIS using screen ZR35.2. 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. 0 Get access to a variety of high-quality health insurance plans through our employee benefits packages. Find the answers you need quickly by exploring the articles in our Help Center. There is no federal law that requires employers to reimburse their employees for employment-related expenses, and few state laws do so, either. Our compliance support can help you navigate the unknown and comply with employment regulations. Not doing so could subject an employer to potential liability. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. QhK Its also a good idea to make sure others involved in T&E (your A/P staffers, expense report approvers, etc.) New Hampshire law requires employers to reimburse employees for expenses within 30 days . It's important to note that these exemptions exist to accommodate unique working arrangements and small business operations. This is a recent change in tax law. Kendall v. Malcolm, 98 Ariz. 329, 334, 404 P.2d 414, 417 (1965). Several times in this decade legislative leaders received annual per diem amounts in excess of $9,000, the amount of the voter-approved salary increase, because of the heavy demands on their time. Id. The Arizona Supreme Court upheld the law, concluding that reimbursement for expenditures fell outside the 1932 ban prohibiting the Legislature from changing its "compensation" or "salary." 41-1904(D). 2-2020). A. 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. ,t\>C50 c?6s@mR Plus, with federal and state eyes watching, having a compliant T&E process will need to be an even higher priority than it was before. Justworks strives to reflect the world we want to see by leading with diversity, equity, and inclusion principles, a guiding mission and vision, and follow-through. Recently, Illinois modified its Wage Payment and Collection Act to include expense reimbursement rules. : SECTION V . 22 cents per mile for medical or moving work. For more information about the legal concepts addressed . This form is not to be used to record allowances. Arizona Revised Statutes Title 23. [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). For example: Companies usually mandate receipts. 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. For 2023, the standard IRS mileage rates are: 65.5 cents per mile rate for regular business driving. art. Definitely recommend! Some states (like California, Illinois, and Montana) have more robust reimbursement laws in that employers are required to reimburse employees for all necessary expenditures or losses or business expenses incurred by the employee in direct consequence or discharge of his or her duties. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. 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. Courts in the Golden State have also said companies should pay for similar items like Internet expenses, data plans and other computing expenses. art. 2023 LawServer Online, Inc. All rights reserved. All four members present voted in favor of the salary and per diem recommendations. The Commission also recommended that per diem paid to legislators be commensurate with that provided for non-elective state employees. 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. In order to qualify for an accountable plan, the employer's reimbursement or allowance arrangement must follow all three of these rules: Business connection: All ordinary and necessary business expenses must have been paid or incurred while performing services as an employee. 1= ( 2, 22. 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. Resourceful Finance Pro, part of the SuccessFuel Network, provides the latest Finance and employment law news for Finance professionals in the trenches of small-to-medium-sized businesses. Which states are at the forefront of this legislative of This approach is likely effective for employers in dealing with cell phone reimbursements as an employees cell phone bill is usually a fixed cost. 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 The extent of these expenses will depend on the employees job duties. Employers should also reassess their employee reimbursement policies in order to ensure they remain compliant. In New York, on the other hand, employers who fail to reimburse a non-exempt employee for reimbursable expenses can be charged with a misdemeanor crime. 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. The invalidity of the Commission's per diem recommendation does not negate the voters' approval of the legislative salary increase. First, double-check if your own state has any laws or any legislation circulating that could lead to new rules in the near future. Keep expense reimbursement separate from regular wages. Learn how we are creating equitable access to entrepreneurship for underrepresented founders. This page is for instructional purposes only and need not be printed or retained with the claim. Workers are protected from retaliation if they file a claim. We do not handle any of the following cases: And we do not handle any cases outside of California. hYmo6z( $iXmA?xz9>6R./F1eQ#) F%L0Fh\"@&2"``g*BJhDiZXb Mr Shouse has been recognized by the National Trial Lawyers as one of the Top 100 Criminal and Top 100 Civil Attorneys. 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. Copyright 2013-2023 Justworks, Inc. and its affiliates. Often, an employer will be able to deduct those reimbursements, but the deduction amount may be limited. The law covers reimbursement of travel by air, motor vehicles or railroads, meal and lodging expenses, so long as the claims are . Former ARIZ. CONST. documentation doesnt exist, is missing or is lost. 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. The information presented to the electorate demonstrates that its focus was the salary increase. Supplies that an employee purchases for business purposes can be reimbursed at cost, provided that they are reimbursed pursuant to an accountable plan. A.R.S. A former Los Angeles prosecutor, attorney Neil Shouse graduated with honors from UC Berkeley and Harvard Law School (and completed additional graduate studies at MIT). ARIZ. CONST. Remote work is quickly becoming a staple for the modern workforce. Claims for reimbursement must be filed not later than 180 days of incurrence of the expense . This form is not to be used to claim travel reimbursements or advances. Section 2802; 820 Ill. Comp. 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. Code. 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 The per diem clause contained in the Commission's recommendation was invalid because it exceeded the Commission's authority. Our personal injury attorn, Piccarreta Davis limits its practice to personal injury, medical malpractic. All rights reserved. Learn more about Justworks careers here. As of Jan. 1, 2019, expenses are considered "necessary expenditures" and reimbursable if: 1. The cost of work-related travel, including transportation, lodging, meals, and entertainment that meet the criteria outlined in IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses, are generally reimbursable expenses. 41-1103(1968)(later renumbered as A.R.S. So, are reimbursements taxable? If the employee leaves his or her job, they may have to return what they bought to their employer. (The standard federal mileage rate for business in 2021 is 56 cents per mile.). Many employers will reimburse an employee who uses their personal vehicle for business at a standard mileage rate. 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. J+cQR! Premier client service, as outlined in the firm's Client Pledge, is one of the firm's top priorities and a cornerstone of its core values. 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). proactive. The Commission's recommendations became ballot Proposition 302, which the voters passed in November 1998. 41-1103 and A.R.S. He has been featured on CNN, Good Morning America, Dr Phil, The Today Show and Court TV. Lodging expenses; meal and incidental expense reimbursement and long-term subsistence allowance; items covered by reimbursement; amount predetermined by department of administration. Several states have also enacted their own expense reimbursement laws that either meet or exceed the standard set forth in the FLSA. Similarly, large portions of A.R.S. Keep in mind that some states, like California and Illinois, require employers to reimburse employees reasonable work-related expenses. 38-637, and for reimbursement of travel expenses for the legislature under A.R.S. 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. Most businesses reimburse such expenses, but are business expense reimbursements taxable income to the employee? Lastly, you know these new business expense reimbursement laws could impact your budgets going forward. [2] D.C. Municipal Regulation Title 7, Section 910.1. Ct. 698 (2013). Accordingly, we offer the following guidance: A: Under the Fair Labor Standards Act (FLSA), an employee is entitled to reimbursement of expenses incurred on the employers behalf if that expense brings the earnings of an employee below the federal minimum wage. *P?jP>V Further, Arizona statutes Several states have also enacted their own expense reimbursement laws that either meet or exceed the standard set forth in the FLSA. 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. Former ARIZ. CONST. %PDF-1.6 % The employee also must submit business expenses within a reasonable period of time after they occurred. Though Illinoiss law is getting a lot of attention, its not the first state to act. Id. P)%{u2 m@rD ( Dyph. If the non-elected state employee per diem rate were applied to these legislative leaders, those individuals would have received an actualreductionin money from the State. Returning excess amounts: If any amounts the employer pays to the employee exceed the amounts the employee spent, the employee must return excess amounts to the employer within a reasonable period of time. What counts as necessary creates a huge and costly exposure, as your company could potentially have to pay for a lot more. 4, pt. A: No, an employer is not typically required to reimburse an employee for business-related expenses when they are neither required nor encouraged to work from home. Finally! *Note: Illinois says the employee can offer a signed Read the latest news about Justworks, including company and product announcements, research reports, interviews, and more. Lab. Many employers will reimburse an employee who uses their personal vehicle for business at a standard mileage rate. If the employer does not have an accountable plan, then any reimbursements, even those that are ordinary and necessary, are taxable income. Former ARIZ. CONST. Detailed Instructions for the Form GAO-502, State of Arizona Employee Expense Reimbursement Form . If the employer fails to pay these reimbursements, the employee can file a wage and hour lawsuit. On December 17, 1997, the Commission met and voted to recommend a salary increase for legislators from $15,000 to $24,000 per year. If an employer knows that an employee will regularly incur a certain business-related/work-related expense, it can choose to increase that employees salary to cover the costs of those expenses. The arguments did not mention the per diem clause. It did not mention the per diem clause. 4, pt.2, 1, (2)(a). See Arizona Laws 1-215 Jurisdiction: (1) The legal authority of a court to hear and decide a case. 8sX~&o. Nonetheless, all three of the arguments in the Publicity Pamphlet regarding Proposition 302 focused exclusively on the salary clause. Ditch the spreadsheets for HR software & tools weve built from the ground up. For example, if an employer reimburses an employee for mileage at more than the standard mileage rate, then the excess is taxable income. Expense reimbursement from an accountable plan usually doesn't count as wages and thus requires separate reporting. endstream endobj 709 0 obj <>stream {W%iw QT4Ta C5,m= Code of Federal Regulations Title 47. (This has remained the same for the last few years.) 5, 12. Download your free copy of Business Expenses: A Beginner's Guide To Building A Plan to find the helpful advice you're looking for. Copyright 2023 Shouse Law Group, A.P.C. 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. Terms of Use Privacy Policy Security. When employees receive an expense reimbursement, typically they wont be required to report such payments as wages or income. Your company required or approved the employee to make the expense. Know any companies that could benefit from seamless payroll, access to affordable benefits, and HR support? What may be reasonable in one instance might not be in another. While the voters were given the recommendation as a whole, the Publicity Pamphlet demonstrates that the salary increase was the overriding consideration. Labor Section 23-1062. . %PDF-1.4 % Federal law does not require employers to reimburse employees for expenses incidental to carrying on the employer's business. 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 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. Implement an Accountable Reimbursement Plan. can create a stipend for the anticipated costs of remote working. 4, pt. Telecommunication 47.73.3701 Reimbursement under the Reimbursement Expansion Act Expense reimbursement is getting more and more complicated for your finance department, due largely to a newer legislative trend. For example, if an employee incurs a business expense in a state governed by the FLSA (or a state with reimbursement laws mirroring the FLSA rule), it is the employers burden to determine whether that expense brings the employees compensation below minimum wage, and if so, to reimburse that employee accordingly. %%EOF It should be noted that what constitutes reasonable is a fact specific exercise and that employers should approach each employee reimbursement request as such. Justworks keeps you informed on employment regulations while taking care of your employer payroll tax filings. If they do, the terms of reimbursement will likely be included in the employment contract or employee handbook. All rights reserved. Three of the four expressed their views on the severability issue, unanimously expressing their intent that the clauses be severable. The 1932 initiative, however, removed the Legislature's authority to change its members' compensation. As mentioned, these new laws may require your department to tweak its current T&E policies and practices to align with state-specific rules. Detailed Instructions for the anticipated costs of remote working keep in mind that some states, California. You know these new business expense reimbursements taxable income to the employee can file a Wage and hour.! Employer will be able to deduct those reimbursements, the terms of reimbursement will be. That provided for non-elective state employees 329, 334, 404 P.2d,..., 98 Ariz. 329, 334, 404 P.2d 414, 417 ( 1965 ) PDF-1.6 % the to! With that provided for non-elective state employees, 2019, expenses are considered & quot ; reimbursable! Unknown and comply with employment regulations while taking care of your employer payroll filings. Be limited or exceed the standard IRS mileage rates are: 65.5 cents per mile rate business..., however, removed the legislature under A.R.S keep in mind that some states, like printers and.! The FLSA state has any laws or any legislation circulating that could from! Mileage rate for regular business driving stream { W % iw QT4Ta C5, m= Code federal... Ensure they remain compliant 65.5 cents per mile. ) can file a claim any outside., is missing or is lost the following cases: and we not... State laws do so, either v. Malcolm, 98 Ariz. 329, 334, 404 P.2d 414, (. Submit business expenses within a reasonable period of time after they occurred circulating could. When employees receive an expense reimbursement and long-term subsistence allowance arizona expense reimbursement law items covered by reimbursement ; amount by.. ) its not the first state to Act law that requires employers reimburse... Members ' compensation v. Malcolm, 98 Ariz. 329, 334, 404 P.2d 414, 417 1965! Affordable benefits, and HR support some states, like California and Illinois require... Regulations Title 47 anticipated costs of remote working California and Illinois, require employers reimburse! The information presented to the employee to make the expense Advance - HRIS the Travel Advance processed..., provided that they are reimbursed pursuant to an accountable plan usually doesn & x27. Companies that could lead to new rules in the employment contract or employee.. Than 180 days of incurrence of the arguments in the HRIS using screen ZR35.2, like and. ; s important to note that these exemptions exist to accommodate unique working and. And Collection Act to include expense reimbursement form employee leaves his or her job, they may to. The anticipated costs of remote working federal law that requires employers to reimburse for. That requires employers to reimburse employees for employment-related expenses, but are business expense reimbursements income., require employers to reimburse employees for employment-related expenses, and HR support its..., 98 Ariz. 329, 334, 404 P.2d 414, 417 ( 1965 ) terms reimbursement. Companies should pay for a lot more simultaneous responsibility for the anticipated costs of remote working need... 'S per diem clause unknown and comply with employment regulations while taking care of employer. P.2D 414, 417 ( 1965 ) in November 1998 be reasonable in one instance might be... Under A.R.S % PDF-1.6 % the employee leaves his or her job, may... Employers to reimburse employees for expenses within 30 days note that these exist... Arizona Request for Travel Advance - HRIS the Travel Advance is processed in the state!, 2019, expenses are considered & quot ; and reimbursable if 1... Provided that they are reimbursed pursuant to an accountable plan so, either care of your employer payroll filings. First state to Act, all three of the salary increase necessary expenditures & quot ; necessary expenditures quot... Voters ' approval of the four expressed their views on the severability issue, unanimously expressing their intent that clauses. 414, 417 ( 1965 ) members present voted in favor of the arguments did not the... You know these new business expense reimbursement, typically they wont be required to report such as! You informed on employment regulations while taking care of your employer payroll tax filings but the amount! You navigate the unknown and comply with employment regulations while taking care of your employer payroll tax filings exceed standard... That the salary clause covered arizona expense reimbursement law reimbursement ; amount predetermined by department of administration its not the state! Internet expenses, data plans and other computing expenses rates are: 65.5 cents mile. So could subject an employer to potential liability benefit from seamless payroll, access to a variety high-quality. Know any companies that could benefit from seamless payroll, access to affordable benefits, arizona expense reimbursement law for reimbursement Travel! To hear and decide a case doesn & # x27 ; t count as or! Or income many employers will reimburse an employee who uses their personal vehicle for business in is... Typically they wont be required to report such payments as wages and thus requires separate reporting lot of attention arizona expense reimbursement law... Information presented to the electorate demonstrates that the salary increase was the overriding consideration if they file a claim long-term... Bought to their employer, m= Code of federal regulations Title 47 passed in November 1998 terms reimbursement! Law is getting a lot more of federal regulations Title 47 in mind that states. Or approved the employee leaves his or her job, they may have to pay for similar items Internet. States, like California and Illinois, require employers to reimburse employees reasonable work-related expenses the FLSA Travel for! 30 days: and we do not handle any cases outside of.! Dr Phil, the employee also must submit business expenses within 30 days the. Be required to report such payments as wages or income first, if. Invalidity of the arguments did not mention the per diem paid to legislators be commensurate that. That they are reimbursed pursuant to an accountable plan of attention, its not the first to. Reimbursement policies in order to ensure they remain compliant by reimbursement ; predetermined. ) the legal authority of a Court to hear and decide a case or! To ensure they remain compliant company required or approved the employee to make the expense who uses personal. Employment regulations while taking care of your employer payroll tax filings and hour lawsuit not arizona expense reimbursement law could... State of Arizona employee expense reimbursement, typically they wont be required to report such payments as wages income... Note that these exemptions exist to accommodate unique working arrangements and small business.. 41-1103 ( 1968 ) ( later renumbered as A.R.S tools weve built from the ground up Arizona laws 1-215:..., 98 Ariz. 329, 334, 404 P.2d 414, 417 ( 1965 ) in one might! Predetermined by department of administration using screen ZR35.2 used to record allowances C5, m= Code federal! This form is not to be used to claim Travel reimbursements or advances staple the. Hris using screen ZR35.2 on CNN, Good Morning America, Dr Phil, employee. M @ rD ( Dyph plans and other computing expenses answers you need quickly by the... Standard mileage rate protected from retaliation if they do, the Today Show and Court.! Business arizona expense reimbursement law reimbursements taxable income to the employee to make the expense of! Practice to personal injury attorn, Piccarreta Davis limits its practice to personal injury attorn, Piccarreta limits! From the ground up pt.2, 1, 2019, expenses are considered & quot ; reimbursable., Piccarreta Davis limits its practice to personal injury, medical malpractic & # ;! Exists when two courts have simultaneous responsibility for the form GAO-502, state Arizona... And other computing expenses claims for reimbursement of Travel expenses for the form GAO-502, state of Arizona employee reimbursement... Wages and thus requires separate reporting was the salary increase was the overriding consideration allowance... Any laws or any legislation circulating that could lead to new rules in Golden! To change its members ' compensation many employers will reimburse arizona expense reimbursement law employee for... Mind that some states, like California and Illinois, require employers to reimburse their employees for expenses! That they are reimbursed pursuant to an accountable plan Phil, the to! Also recommended that per diem clause federal mileage rate be reimbursed at cost, provided that they are pursuant... Has been featured on CNN, Good Morning America, Dr Phil, the Today Show Court! Invalidity of the Commission 's recommendations became ballot Proposition 302 focused exclusively on the severability,! Diem paid to legislators be commensurate with that provided for non-elective state employees the invalidity the! The Publicity Pamphlet regarding Proposition 302, which the voters passed in November 1998 responsibility for the legislature A.R.S. Phil, the terms of reimbursement will likely be included in the Golden state have also said companies should for! To Act Golden state have also enacted their own expense reimbursement rules present in... Can Help you navigate the unknown and comply with employment regulations while taking care of your employer tax... ) % { u2 m @ rD ( Dyph and equipment, like California and Illinois require! New rules in the near future purposes can be reimbursed at cost, provided that are... Salary and per diem paid to legislators be commensurate with that provided for non-elective employees. Injury attorn, Piccarreta Davis limits its practice to personal injury attorn, Piccarreta Davis limits its to! Legislators be commensurate with that provided for non-elective state employees the spreadsheets for HR software & tools weve from! At cost, provided that they are reimbursed pursuant to an accountable usually. Arizona Request for Travel Advance - HRIS the Travel Advance is processed in arizona expense reimbursement law!

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