The value of an employee’s personal cell phone use of an employer-provided cell phone or similar personal communication device is now excluded from wages as a working condition fringe benefit.  As a result, employees no longer have to maintain detailed cell phone use records effective after December 31, 2009.

The Small Business Jobs Act of 2010 passed by Congress earlier this year effectively removes cell phones from the “listed property” classification recognized by businesses for tax purposes and eliminates the strict substantiation requirements of use and depreciation deduction limitations.

Before this change, an employer was allowed to exclude the value of an employee’s business use of an employer-provided cell phone from wages as long as the employee kept records distinguishing business from personal phone charges.  However, the employer was required to include the value of an employee’s personal cell phone use in wages.

Congress and the IRS considered easing the documentation rules realizing the difficulties involved with keeping accurate cell phone usage records.