SANTA CLARA, CA--(Marketwire -06/28/12)- Amtel Inc., the industry's first integrated solution for managing mobile device security and telecom expenses, today announced a webinar on the current tax implications for company-issued and employee-owned mobile devices. The webinar will take place on Thursday, June 28, 2012 at 10:30 am PT.
John Skeen, an accounting firm principal, is the featured speaker who will discuss the IRS guidance to the Small Business Act of 2010, which removes cell phones from the definition of listed property, a category under tax law that normally requires additional recordkeeping by taxpayers. "Congress recognizes that mobile devices need to be treated differently in the tax code," according to Skeen. "The changes benefit both employers and employees by eliminating any ambiguity; the tax status of legitimate reimbursements cannot be called into question."
The notice provides guidance on the treatment of employer-provided cell phones as an excludible fringe benefit. The notice states that when an employer provides an employee with a cell phone primarily for non-compensatory business reasons, the business and personal use of the cell phone is generally nontaxable to the employee. The IRS will not require recordkeeping of business use in order to receive this tax-free treatment.
"The rapid growth of BYOD over the past 12 months has brought to light the dramatic changes happening within organizations," said Richard Bliss, Amtel Chief Marketing Officer. "Our MDM solution is typically sold to enterprise IT, and telecom expense reimbursement is typically managed within the finance silo. This ruling helps enterprises reduce the costs of processing expense reports of employees filing solely for a BYOD reimbursement."
With respect to reimbursements for work-related use of employee-owned cell phones, employers that require employees, primarily for non-compensatory business reasons, to use their personal cell phones for business purposes may treat reimbursements of the employees' expenses for reasonable cell phone coverage as nontaxable. This treatment does not apply to reimbursements of unusual or excessive expenses or to reimbursements made as a substitute for a portion of the employee's regular wages.
Click here to register for the webinar.
For more information about Amtel, visit www.amtelnet.com or follow Amtel on Twitter @AmtelNet.
About Amtel, Inc.
Founded in 2001, Amtel, Inc. is a leading mobile device management (MDM) provider, addressing the challenges organizations face in managing mobile devices and telecommunications expenses. Amtel developed the industry's first integrated MDM and expense management software-as-a-service solution, allowing organizations of all sizes to securely manage mobile devices, fixed lines and telecom expenses from a single platform. Provided via a convenient and cost effective SaaS platform, Amtel MDM is the SAS 70 Type II certified solution, offering the highest level of data security and reliability.