Sample Cell Phone Policy.

Church Cell Phone Reimbursement Policy

Purpose:

To establish guidelines for reimbursing pastors and staff for the business use of personal cell phones necessary to fulfill their ministry and administrative duties.

Policy:

The church recognizes that certain employees (e.g., pastors, ministry leaders) may need acell phone to effectively carry out their work. In lieu of providing a church-owned phone, the church will reimburse a portion of personal cell phone expenses as a non-taxable reimbursement under an accountable plan, provided the following conditions are met:

Eligibility:

The employee’s role requires frequent or regular cell phone communication for church business (e.g., emergency calls, pastoral care, coordination of church functions).

Reimbursement Procedure:

Documentation Requirement:

The employee must submit a monthly phone bill showing the total cost of the service.

A reasonable estimate of the percentage of business use (e.g., 70%) must be included.

The church will reimburse only the business-use portion of the cost.

Reimbursement Cap:

Reimbursement will not exceed $___per month (amount set by the church board).

Timeliness:

Reimbursement requests must be submitted within 60 days of incurring the expense.

Return of Excess:

If the amount reimbursed exceeds the actual documented business expense, the excess must be returned to the church within a reasonable time (usually 120 days).

Tax Treatment:

Reimbursements made under this policy are considered non-taxable to the employee and not reported on Form W-2.

If an employee does not follow this policy (e.g., fails to submit receipts), the allowance may be treated as taxable income.

Policy Review:

This policy will be reviewed annually and adjusted as necessary by the church board or finance committee.

Tips:

Keep a signed copy of this policy on file.

It is very important to save receipts and reimbursements.

Approve it via a church board resolution to document intent and compliance.