Mobile phones for employees

[geoffw]

I find that it's really important for employees to have mobile phones, to be able to be called or to call in.

Can the company provide a mobile phone to an employee on a salary sacrifice? Could a phone be double depreciated like a laptop computer? Can prepayments for exisiting mobile phones be taken out of their pre tax dollars?

 

[DaleGG]

Hi Geoff

Yes, a buisness can provide mobile phones for employees to use and providing the instructions are for them to be used predominantly for business purposes then there will bo no FBT to complicate matters.

The business can pay for the ongoing costs as well.

Yes, a double tax deduction is possible if the employee pays for it and the employer business reimburses the employee under a salary sacrifice arrangement.

Have fun

Dale

 

[geoffw]

Thanks for that Dale. That's good. It would be a nice incentive for employees- at least those who work enough hours to pay tax.

 

[David E-Noosa]

Along the same lines Geoff I own all the mobile phones and numbers for my RE office. If someone leaves they do not take all the contacts they have accumulated whilst working for me. They are quite at liberty to keep their own database of clients, but not continue to get calls months later because of a number on a card or advert etc which has been funded by me.

I pay the costs, its worth the expence.

They also enjoy getting new flash phones on a regular basis

 

[Ricardo29]

geoff...i dont think there would be an australian over the age of about 14 who doesnt have a mobile already. 100% for females, perhaps a bit less for males. up to at least age 40'ish or over perhaps.
i wouldve thought your staff (mainly young i assume) would all have one...perhaps theyre having a lend of you if they dont ring in/you cant contact them ??

 

[Steve KKK]

At least if they have a Company Phone they can't come up with the excuse of "I had no credits left so I couldn't call in".

Geoff, maybe you could get Subway designer phone covers for them. Or perhaps ones that look like a 6 inch sub!

Could be a whole new market in these!!

 

[vandalic]

Geoff, if you end up deciding to get your staff phones have a look into pooled corporate plans. We use Vodafone for our national user base who all sit within a large corporate plan. This enables all call costs to be combined to reduce the high cost of heavy users going over individual plan amounts and/or having to pay large amounts for staff which barely use their phones. It is much easier for budget control...

 

[Peter Parker]

Thanks for that Dale. That's good. It would be a nice incentive for employees- at least those who work enough hours to pay tax.

If I was them, I'd refuse this kind offer

For ages I didn't have a mobile. When I did, it was strictly for IP, personal and social use. Never once did I take it to work or advertise that I had one (even though part of my work at the time was selling them).

However, for the casual worker, they may be a necessary evil.

Peter

 

[geoffw]

geoff...i dont think there would be an australian over the age of about 14 who doesnt have a mobile already. 100% for females, perhaps a bit less for males.

A 24 yo who is severely in financial trouble. He's got plenty of money for beer and ciggies- at least he has the necessities.

What's the position on GST? If I pay, and reimburse the employee, can I also calim the GST on the company?

 

[handyandy]

Hi Geoff

I just see massive problems managing their phone accounts if you handed out normal mobiles.

Instead, maybe the idea is to get them the phones that have the prepayment cards. This way you have a phone number that you can ring regardless of the levels of credits on the phone.This way it removes any extra efforts for managing their phone accounts.

If they want to claim a phone card expense back from you them as per the other post this should be tax deductable/GST claimable to you and deductable from their gross salary (including the GST).

When they leave you simply grab the phone off them and hand to the next employee. Even if you fail to recover the phone the cost of replacement isn't that horrendous.

The only point of management is at hand over if there are credits left on the phone.

Cheers

 

[Bargain Hunter]

Hi Geoff,

Giving transient workers a company mobile phone? I don't think it is a good idea. I certainly wouldn't accept it as salary sacrifice.

If a worker is unable to make it for a shift they have to call you, their responsibility not yours. I know it becomes your problem for staffing but do you really believe they will ring because you gave them a phone. Are they going to have it on 24 X 7 awaiting your call?

Sure with a company phone they can't say they had no credit but; 'I was out of range', 'the battery got flat' ('cause they couldn't help that), 'I didn't know I couldn't ring my mates', 'it got lost (again nothing to do with them).

Company supplied mobile phones are there for responsible employees. Sure if you have some of these and you do want to reward them that's great. But if you believe giving mobile phones to non-responsible employees will make them responsible I believe you have another think coming.

Regards

Andrew

 

[geoffw]

Andrew

A fair viewpoint.

But I am not giving them a phone in any way which costs me anything more than a little bookwork. It's just a way of structuring their purchase so that it costs them a little less. That makes the employee happier, and gives them just a little more incentive to stay working for me.