Quote:
Originally Posted by Shazam
It's a taxable benefit so he's paying for it.
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Disagree.
The phone would not be a taxable benefit if the company provides the employee with the phone, the company owns the phone, and the company requires the employee to use the phone as part of their employment duties.
The phone service plan would not be a taxable benefit if the company requires the employee to use the phone as part of their employment duties, the plan has a reasonable fixed cost, and the employee's personal use of the service does not result in additional charges.
If there are additional charges as a result of the personal use, those charges are a taxable benefit, unless the employee reimburses the employer for those charges.