Congratulations! Your first day on the new job starts today. It’s a busy one, introducing yourself to a long list of existing clients. You pick up your cellphone and get to work.
Hardly anyone questions the practice of conducting business on a personal cellphone, a ubiquitous telecom development that in 2010 became known as Bring Your Own Device.—or BOYD. Consider that according to research by Samsung, 61% of companies expect remote availability from employees—even those who are not provided a company phone. But the often-overlooked question here is, who pays for that business usage?
The average cell phone bill for a single person is $141 a month, according to J.D. Power (includes phone cost, line fees, insurance and extra data charges). If you use your phone for work 50% of the time, you’re looking at about $840 annually paid from your hard-earned salary. Unfortunately, employees cannot claim it as a federal tax deduction, either.
Where you can recoup at least some of the cost is through BYOD reimbursement. In the Samsung survey, 31% of companies with a formal or informal BYOD policy paid the entire cost of their employees’ phone usage, and 40% paid at least a portion. Even so, many employees still have no clue if they are eligible for reimbursement. Worse, there are still companies whose BYOD policy does not include employee compensation at all—6% in Samsung’s survey.
That means you might have to take matters into your own hands. Here are some strategies to try depending on your company’s BYOD policy:
If Your Company Has a BYOD Policy with Reimbursement…
- The best time to take advantage of cellphone reimbursement is when you get your job offer. Read your offer paperwork carefully and jot down any unanswered questions for HR.
- Here are some sample questions to ask: Is a personal phone required? Will I be reimbursed and if so, how and how much? What are my options if I do not want to (or cannot) use my own phone for business? Do BYOD benefits cover loss or damage while on company business?
- Larger companies typically either provide you with company cellphones or they will allow you to use your own. Remember to ask if you still get reimbursed even if you decide not to take the company-provided phone.
- Stipends vary from company to company, usually based on their size. The base range is $30 to $50, although that can increase to $75 or even $100 if you are in a sales or travel-intensive position.
- Know whether you’re getting a reimbursement or a stipend. Reimbursement pays you for specified phone expenses you have already incurred. You must submit a form and proof of expenditure before getting reimbursed. A reimbursement is usually capped at a certain amount, too. Stipends are a fixed amount you receive every month or every paycheck, regardless of any variation in your phone bill.
If you are already a year or two into your job, it is still entirely reasonable to ask about reimbursement. Go to your employee dashboard and look up your benefits–BYOD details should be listed there. If not, request them from your HR manager or your supervisor.
If Your Company Doesn’t Have a BYOD Reimbursement Policy …
- Document your phone usage carefully for a few months (or compile the previous few months if you have records). Include time spent on business calls, insurance and any cost overages you incurred during that time (such as additional data needed or an international plan for business travel).
- If you live in one of these states or cities, you’re entitled by law to compensation for using your phone for business. Your employer should be made aware of this.
- Companies without a formal policy may still have an informal one. Ask your supervisor for details and how to apply for BYOD compensation.
- Your company may tell you that they do not reimburse or provide stipends. You can negotiate this when it comes time for a raise. Bring your prepared documents and ask for a sum to be added to your raise that covers reasonable phone usage. Repeat at every salary review.
- What about a tax write-off? The bad news is that many miscellaneous deductions have been eliminated from the IRS tax code, including phone usage for business. The good news is that your state may allow it. Ask your tax preparer.
- If nothing works and you still want to stay with the company but hate giving out your personal number, consider setting up an alternative phone number, such as through Google Voice. A business subscription would need to be discussed with your employer, to see if they would be willing to pay for it and if it satisfies their IT and security priorities.
The consensus on BYOD is that it is reasonable for employees to request fair compensation for conducting business on their personal phones. Should you take the initiative and ask, or maybe campaign for your company to create a fair BYOD policy? That’s entirely your call.
Erika Kotite is a freelance writer with a small business background. She enjoys exploring the issues where business and personal worlds converge.
Photo from TippaPatt/Shutterstock.com