Wireless Communication Stipend Policy (2.1.7) Effective: 09/01/08 Merianne Cardas Administration and Finance - PowerPoint PPT Presentation

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Wireless Communication Stipend Policy (2.1.7) Effective: 09/01/08 Merianne Cardas Administration and Finance

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  1. Wireless Communication StipendPolicy (2.1.7)Effective: 09/01/08Merianne Cardas Administration and Finance

  2. Agenda • Policy Background • General Information • Policy • Stipend • Device • Plan • Transition • Stipend Eligibility • Stipend Specifics • Recipient Responsibilities • Security Considerations • University-Owned Wireless Devices • Miscellaneous • Procedure for Acquiring a Stipend • Useful Links

  3. Policy Background Federal tax law (IRS): • Considers personal use of a university-provided wireless communication device a taxable fringe benefit • Requires employees using such device to log all calls, denote if personal or business, and document the business purpose of call • Requires the university to include the value of personal calls in taxable income • Can declare the entire cost of the plan as taxable income if the log is not kept

  4. General Information: Policy The Policy (2.1.7): • Fulfills tax obligations • Eliminates need for onerous documentation by the individual

  5. General Information: Stipend • University provides, through payroll, a monthly taxable stipend to cover business use of the wireless plan • Employee must qualify for eligibility; not applicable for all • Employee receiving must agree to responsibilities of the policy • Employee applies for the stipend through GETit

  6. General Information: Device • The university will not purchase, own or reimburse for wireless communication devices effective September 1, 2008* • If you already have a device purchased by the university, you may keep it at no cost • If you already have a personally-owned device that meets your business needs, you need not change your device • If you choose to purchase a (new or different) device, it is at your own expense * except in very limited circumstances (to be covered later)

  7. General Information: Plan • The university will not renew or extend existing wireless communication contracts effective September 1, 2008* • If you are covered by a university-paid plan, you must convert to a personal plan • You can select any carrier/plan that meets your business needs • If you already have a personal plan that meets your business needs, you need not change plans • The cost of the personal plan is the employee’s; the stipend only covers the projected business use • UCit is available for service consultation; contact UCit @ 556-mobi (6624) to setup a consultation * except in very limited circumstances (to be covered later)

  8. General Information: Transition • Units or employees using a university-owned device acquired prior to the establishment of this policy and bound by a two-year plan, have a maximum of 2 years from the effective date to comply with the policy. During that time: • Must comply with IRS documentation requirements • Are not eligible for the stipend • Units or employees may choose to transition immediately • Note: the university’s preferred contracted carrier (UC Mobile) does not require contracts so departments and individuals can transition as soon as possible • Consult with UCit prior to the expiration of your contract or the effective date of the policy for a smooth and seamless transition; contact UCit @ 556-mobi (6624)

  9. Stipend Specifics • Recipient must be UC faculty/staff paid via university payroll • Stipend ranges: • Determined by the Controller; approved by VP of Finance • Variant Expense Rate Table • Stipend categories: • Voice • Data/text stipend may be added • Stipend amount: • Based on business usage only as approved by one’s supervisor • Not intended to cover entire monthly cost

  10. Stipend Specifics (cont.) • Paid monthly through payroll • Not an increase to base pay or used for calculations for raises, retirement, etc. • Taxable income • Itemized on pay stub • Reported on W2 • Subject to withholding • Stipend amount added to employee’s paycheck will be increased by 25% to defray the deduction for payroll taxes

  11. Stipend Eligibility • Business need; approved by supervisor • To qualify: • The employee’s job requires that they work regularly in the field and need to be immediately accessible. • The employee’s job requires that they need to be immediately accessible outside of normal business hours. • The employee is responsible for critical infrastructure and needs to be immediately accessible at all times. • The employee travels and needs to be accessible or have access to information technology systems while traveling. • Access via voice and/or access to information technology systems via a mobile communications device would, in the judgment of the supervisor, render the employee more productive and/or the service the employee provides more effective, and the cost of mobile communications service is therefore warranted.

  12. Recipient Responsibilities Employee must agree to: • Provide phone # within 5 days of activation • Be available (have device and have it on) during times specified by management • Have a device/plan that meets job requirements • Inform university if eligibility is not met or changes • Inform university if wireless service is cancelled • Provide management with first page of plan bill (if requested) • Provide management with documentation of business use (if requested) • Provide management with documentation when applying or renewing • Pay for charges on the plan (including early termination fees) • Remain responsible for plan obligations if employee leaves position • Personal responsibility for complying with international, federal, state and municipal laws regarding the use of a wireless while driving • Use discretion in relaying confidential information over a wireless But there is no need to maintain a call log!

  13. Security Considerations • Any mobile device accessing the university’s infrastructure may be subject to current or future policies & guidelines • From Information Security office • From IT governance structure • Some examples of what might be covered in current or future security policies: • Mobile anti-virus spyware • Mobile firewall • Strong passwords • Two-factor authentications • Costs for security measures are the device owner’s

  14. University-Owned Wireless Devices • In limited circumstances, the university may purchase a wireless communication device and plan. Some examples: • Devices that rotate among individuals; not in any one individual’s name • Test devices for central IT • Devices not taken to one individual’s home on a regular basis • Must be approved by the president, senior vice president, or vice president using the Policy Exception Form (check “Other”) • Acquired by the business office through GETit • Business office must review statement monthly • No personal calls: inadvertent or emergency personal calls are reimbursed to the university at $10 plus costs • Individuals using the device must maintain a call log for business and personal phone calls and document the business purpose of calls (Cell Phone Usage Log)

  15. Miscellaneous • Any exceptions to the policy require approval by the president, senior vice president, or vice president using the Policy Exception Form(check “Other”) • For someone receiving the monthly stipend who has extraordinary business usage or international usage that exceeds the stipend amount in a particular month: • Apply for a one time stipend in GETit • Requires documentation and supervisor approval • For someone not receiving the monthly stipend who uses one’s own device for university business in a particular month, the individual may: • Apply for a one time stipend in GETit • Requires documentation and supervisor approval

  16. Miscellaneous (cont.) • Misuse/fraudulent receipt of stipend • Progressive administrative and/or disciplinary action up to and including termination and criminal prosecution • Always consider communication alternatives that might be adequate but less costly (e.g. landlines, pagers, radio phones, etc.) • Check with your grants administrator regarding stipend payments on a sponsored project • Org units are not required to provide stipends; org units may have more restrictive policies

  17. Procedure for Acquiring a Stipend • Applying • Determine business use and agree on stipend amount(s) with supervisor • Request stipend through GETit • Stipend is approved by GETit Approver • Employee receives email that requires acceptance of the conditions of the stipend agreement • PCR (Personnel Compensation Request) process begins • Once PCR is approved, stipend is added to employee’s pay on the next regular pay day, subject to payroll deadlines (Monthly, Biweekly) • Renewal • Stipends deactivate at the end of the fiscal year (June 30) • Stipends must be renewed annually; more frequently if changes to the eligible amount • Documentation required: plan coverage and business usage

  18. Useful Links • Links from www.uc.edu/af/policies • Wireless Communication Stipend Policy • Wireless Communication Stipend Policy FAQs • Wireless Communication Stipend: Key Things to Know • Things to Consider When Selecting a Wireless Carrier • Cell Phone Usage Log • Stipend Amounts (Variant Expense Rate Table) • GETit • IRS • Questions: policyquestions@uc.edu