Should You Reimburse Communication Bills As Part of Your Salary or Outside of Your Salary?

by Vinaya HS on November 14, 2011

in Finance

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At work, for employee-grades “Manager or higher,” we have the following options for having communication bills (official expenses incurred on cell phone, broadband expenses at home, and Skype-out credits) reimbursed:

  • Claim all communication bills within the “telephone allowance” component of the Flexible Benefit Plan (FBP). Usually capped at 2,000 per month or 24,000 per annum. Nothing is paid outside of salary and you get income-tax exemption for all claims.

OR

  • Claim all communication bills outside of salary (no official cap/limit is specified but your claims ought to be reasonable) and also receive the after-tax value of the “telephone allowance” component.

Depending upon your specific bill amounts, reimbursing these communication bills outside of salary might just put some extra cash in your hand. If it does, you definitely should take advantage of it. After all, why say no to free money?

Here’s a handy calculator to help you determine if and how much.

[Download the communication bills reimbursement calculator.]

And if you don’t know whether your employer provides this option, you definitely should go and ask anyone sitting in Finance and Accounts.




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