Employee Advance Repayment & Reimbursements to Employer

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    • #292523

      This SIG Member from the Buy-side is looking for methodologies and tools for collecting payments from employees for benefits advanced by their employer. 

      For example, this Member company will pay a certain amount for each employee to have a company standard mobile phone. If they choose to upgrade, the company pays for the full amount upfront, but the employee needs to reimburse the company the difference between the standard phone cost and the upgrade they selected. Another example would be when an employee has personal spend on their corporate card, they would need to reimburse that amount to the company. 

      1 – If your company is collecting money owed from your employees, what methods are you using to collect payment? Personal check, payroll deduction or a mobile payment service like Venmo or PayPal? 

      2 – If using some kind of system, how do you offset the provider fees? 

       

    • #295328
      Anonymous
      Guest

      would it not be easier to just pay an employee a set allowance?

    • #295329
      Anonymous
      Guest

      Payroll deduction has been the best method in my experience. Other methods have been fraught with collection issues and that never ends well in an employer/employee situation. Payroll  deduction takes it from the paycheck so there are no additional transactions to track or collection issues if payments aren’t made. It also allows owed amounts to be kept from final paychecks or vacation payments when employment is terminated by either party. 

       

      For expenses on pcards, I advise a policy on what can be placed on a company pcard. Charges related to company travel are okay. Charges that have nothing to do with  the company are not okay. Personal amounts are subtracted from any due reimbursement amounts. Otherwise, they are taken from payroll as well. 

       

    • #295330
      Anonymous
      Guest

      From my experience, there should be procurement policies that should be in place so that employees are guided and don’t go on spot buys.

      However, if they have to purchase something and the company needs to be reimbursed, submission of the invoice from the provider along with proof of payment and the easiest way to recoup the cost will be payroll deduction.

      Payroll deduction is internal and would be easier to implement.

       

    • #295331
      Anonymous
      Guest

      Payroll deductions always.  If they need a repayment plan, we will set that up too

    • #295332
      Anonymous
      Guest

      The easiest way is a payroll deduction with personal check.

    • #295333
      Anonymous
      Guest

      We use payroll deductions!

    • #295334
      Anonymous
      Guest

      a.)For the sale/evaluation of old phone, I would suggest to have a common platform (third party) for evaluation of device. Employee before proceeding with upgrade, will need to accept the proposed value via third party’s website. There are many active e-platforms that deal in old telecommunication devices and one good example in India is ‘Cashify’. A corporate tie up with Cashify (or someone similar) will allow employees to access and evaluate their current device. Such third party can also be utilized for purchase of new phones if required and can fetch us benefits of bulk buy, however that is optional.

      b.)Once the employee completes device evaluation and wishes to proceed with purchase, the third party will collect the device from employee via its own logistics (Cashify does this for individual customers). Once collected and validate, the third party can credit the agreed amount to the employer/company. In this way, there would be no need for a collection process to be done separately. 

      c.)Once the device is collected by third party and amount transferred, the company may initiate the purchase and dispatch of new upgraded device to employee. The timing/sequence may vary as per preference however once the old device is collected by third party, they will share a confirmation to employer and the other process can be initiated. 

      d.)Contract – this setup would require a precise contract capturing the method of transaction and related clauses for default, risk, payment terms etc. Employer may also negotiate a better price for sale of existing employee devices based on volume. 

       

      Second scenario:

      a.)If employer wants to pay upfront for the devices and does want to go payment collection via someone like Cashify, we will still need an evaluation platform for existing device. Further, to collect the balance amount (difference between old and new device), ideal method should be to settle the outstanding amount via payroll/salary. A cheque should be the least preferred method. Involving a third party online payment platform, we can offset the service fee by promoting such third party in our promotion drives, events, activations. The other way is to offer a consumer special price for our products if purchased/paid via third party’s platform (this would a limited time scheme) however the third party can benefit through sales of our products via their platform.

       

    • #295335
      Anonymous
      Guest

      Most deductions are payroll based.  In the instance of corporate card personal expenses the employee is required to pay Amex directly for those expenses.

    • #295336
      Anonymous
      Guest

      We are still using checks to collect payments back from colleagues, but would love to know if other members have found alternatives. 

    • #295337
      Anonymous
      Guest

      1.Payroll deduction for items like the example of upgrading a phone, but absolutely NO personal use of corporate cards is allowed.

      2.We do the work internally so no offset is needed.

       

    • #295338
      Anonymous
      Guest

      Hi, we do not allow advancement of benefits. On cell phones, we are getting rid of employer provided phones and moving to a Bring your own device (BYOD) program with a monthly stipend of $70 issued via payroll. The stipend is an electronic communication stipend and the employee may put it to a cell phone, internet access. 

      If an employee mistakenly puts something personal on their American Express Corporate card, they must pay American Express directly. 

      In the event an employee is on an unpaid leave and is paying for their portion of the healthcare, they mail a check in to our benefits department. 

       

    • #295339

      Outside of payroll deductions for phone, public trans. cards and similar benefits, I know of no other way that [company] would collect for additional benefits that Ally makes available to its employees. 

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