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Cell Phone Reimbursement Guidelines

It is common for employees to receive cell phone allowances intended to cover legitimate business use of personal cell phones. Cell phone allowances are a non-taxable benefit for employees and do not require significant documentation or record keeping.

Employers should keep the allowance at or below the actual cost of the employee’s phone bill in order to stay compliant with IRS guidelines, which can be found here. Typically, companies provide cell phone allowances between $50.00 and $125.00 per month, depending on the amount of monthly business use.

Cell phone allowances are another way employers can boost employee perks and fringe benefits without adding additional tax or burdensome administration.  For assistance in implementing a cell phone reimbursement plan that works for your business, or for additional information on the IRS guidelines, reach out to an HR professional at 810-534-0170 or

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