Should Work Pay For My Phone
our digital age
As we’re heading further into the digital age where we are frequently using our mobile devices in favour of landline phones, it poses the question as to whether employers should provide their staff with mobile phones to use.
Because all businesses vary in the way in which phones are used, it really depends on what feels right for your business and what the most logical and efficient thing is for you.
Hearsay tells us, that staff are more likely to be careful with a mobile device if it is theirs and that they are much less careful with devices that are company issue. Because of this, we may be quick to encourage them to use their own technology, however, they may also be entitled to some form of compensation to do so.
Here are some things to consider when having staff use their own mobile phones for work purposes;
If you decide to ask the employees use their own mobile devices you will need to reimburse any out of pocket expenses they incur. The Fair Work Ombudsmen recommends that you establish an Individual Employer Agreement, nominating a set, fair amount for this. http://www.fairwork.gov.au/employee-entitlements/flexibility-in-the-workplace/individual-flexibility-agreements
Other things to consider are that the employee may claim up to $300 without receipts as a deduction for work related phone expenses. They may not claim connection or cancellations fees or special services, such as a silent number. https://www.ato.gov.au/individuals/income-and-deductions/deductions-you-can-claim/
They may also be able to claim depreciation on the mobile device. https://www.ato.gov.au/uploadedFiles/Content/IND/downloads/Guide-to-depreciating-assets_2017.pdf
Many businesses believe that issuing staff with a company issue mobile device is standard procedure, however, it is not always the case. For businesses that are weighing up the pros and cons of this expense, you need to determine whether you staff would be able to claim against these facts and whether you’d be better investing in a quantity of mobile devices instead.
If the employee is made aware of deduction and depreciation potential with using their own device, it may be an incentive for them to use their own!