Wireless Communication
Stipend Policy (2.1.7)
Effective: 09/01/08
Merianne Cardas
Administration and Finance
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
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
General Information: Policy
The Policy (2.1.7):
Fulfills tax obligations
Eliminates need for onerous documentation
by the individual
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
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)
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)
General Information: Transition
Units or employees using a university-owned device acquired
prior to the establishment of this policy and bound by a twoyear 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)
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
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
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.
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!
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
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)
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
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
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
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