How to Set Up a Cell Phone stipend:
1. First determine how much you want to offer your team members, within what timeframe.
Most companies offer cell phone stipends on a monthly basis, but you can do quarterly or annual -- whatever is best for you situation and team. Then determine how much.
According Abacus' How to Create a Cell Phone Reimbursement Policy, they suggest "$50 for low business use and $75 for high business use."
Also, here's a handy calculator to help you identify how much you should be spending on mobile stipends.
2. Secondly, select your perk spending categories.
Next decide, if you're doing a cell phone reimbursement spending option only, or if you're creating a larger, more comprehensive program around all-work related expenses. The latter is considered more akin to a perk program and would include items like hardware, home internet bills (especially great for those who are remote), software, and anything else that helps them to enhance their work abilities and experience.
3. Once you have this information determined, now it’s time to decide how you’ll manage the process.
Your options include:
Managing the manually.
If you choose this option, be prepared to set up a process to track purchases, receipts, balances, approval and paid perks, as well as rejections or ones which need further review.
Consider using Google forms to track submissions, excel or Google sheets to track progress, and be sure to create a process to track the nontaxable vs taxable (for IRS compliance).
Choose a software to help you manage this.
Concur and Expensify are two of the most well known choices for business reimbursements.
However, if you decide however to extend the program to be more than just a cell-phone reimbursement program and include all types of work-related perks, a perk management software like Compt can help.
Compt is 100% IRS compliant, can manage your other perk stipends, and streamlines the entire process which makes you and your finance team's job much, much easier. Plus, with Compt you don't have to pay each expense report like expense software, but rather pay monthly amount based on the number of team members which can lead to a lower total price.