24.11.2504    RENTAL OF EQUIPMENT OR CAPITAL ASSETS--NOT WAGES

(1) Payments made by the employer to the employee for rental of equipment or capital assets owned by the employee are not wages if: 

(a) the equipment is necessary for the employee to perform the job;

(b) the employment contract or the entity's records provide for such payments;

(c) the amount of each employee's reimbursement is entered separately in the employer's records; and

(d) the reimbursement does not replace the customary wage for the occupation.

(2) The actual expenses incurred by the employee may be considered reasonable rental fees if the employer's records show:

(a) the initial cost;

(b) depreciation; and

(c) maintenance and operational costs in connection with the services performed for the employer.

(3) With respect to equipment or capital assets, other than vehicles, the employer may pay an allowance not greater than the reasonable rental value for that equipment.

(4) For individuals involved in timber falling, the reasonable rental value may not exceed $22.50 per working day for chainsaw and related timber falling expense.

(5) With respect to heavy equipment, including but not limited to semi-tractors or bulldozers, the reasonable rental value may not exceed 75% of the employee's gross remuneration.

(6) Passenger vehicle expenses may be reimbursed either on the basis of actual receipts or upon mileage, at a rate no greater than that allowed by the United States Internal Revenue Service for that year, provided that the individual actually furnishes the vehicle.

(7) Hand tools customarily used in the employee's trade have no rental value for purposes of this rule. Any rental payments made with respect to these items are considered wages.

History: 39-51-301, 39-51-302, MCA; IMP, 39-51-1103, 39-51-201, MCA; NEW, 1988 MAR p. 2723, Eff. 1/1/89; AMD, 1993 MAR p. 13, Eff. 12/25/92; TRANS, from 24.11.813 and AMD, 2004 MAR p. 2808, Eff. 11/19/04; AMD, 2014 MAR p. 593, Eff. 3/28/14.