cell phone and internet stipend program for employees (new participants)
TRANSCRIPT
Cell Phone and Internet Stipend Program Cell Phone and Internet Stipend Program For EmployeesFor Employees
(NEW PARTICIPANTS)(NEW PARTICIPANTS)
Stipend Program Steering Stipend Program Steering CommitteeCommittee
Towana Moore Towana Moore Associate VP of Business ServicesAssociate VP of Business Services540 568 2535540 568 2535e-mail: e-mail: [email protected]@jmu.edu
John Knight John Knight AVP, FinanceAVP, Finance540 568 6433540 568 6433e-mail: [email protected]: [email protected]
Dale Hulvey Dale Hulvey AVP, Information TechnologyAVP, Information Technology540 568 706540 568 706e-mail: [email protected]: [email protected]
Jill Eckard Jill Eckard Director, Payroll ServicesDirector, Payroll Services540 568 3402540 568 3402e-mail: [email protected]: [email protected]
Michael WoolmanMichael WoolmanDirector, TelecommunicationsDirector, Telecommunications540 568 3119540 568 3119e-mail: [email protected]: [email protected]
Norma BurkholderNorma BurkholderTelecommunicationsTelecommunications540 568 3484540 568 3484e-mail: [email protected]: [email protected]
Roya EdelsteinRoya EdelsteinTelecommunicationsTelecommunications540 568 6561540 568 6561e-mail: [email protected]: [email protected]
Kathy PittsKathy PittsTelecommunicationsTelecommunications540 568 6108540 568 6108e-mail: [email protected]: [email protected]
Susan DeanSusan DeanTelecommunicationsTelecommunications540 568 6471540 568 6471e-mail: [email protected]: [email protected]
Let’s talk about the Stipend Let’s talk about the Stipend Program . . .Program . . .
Because of business need, and in the course Because of business need, and in the course of carrying out job responsibilities, wireless of carrying out job responsibilities, wireless phone and internet services are becoming a phone and internet services are becoming a preferred method of carrying out business preferred method of carrying out business communications.communications.
The Cell Phone and Internet Stipend The Cell Phone and Internet Stipend Program is designed to compensate Program is designed to compensate employees for the employees for the business use portionbusiness use portion of of their service.their service.
How will the stipend be How will the stipend be determined?determined?
A stipend amount will be carefully A stipend amount will be carefully chosen from the list of pre-chosen from the list of pre-determined stipend amounts by determined stipend amounts by management. Amounts will be based management. Amounts will be based on business need.on business need.
The amount will be placed on the The amount will be placed on the employee’s paycheck and will employee’s paycheck and will appear semi-monthly.appear semi-monthly.
Reasons for Stipend Reasons for Stipend ProgramProgram
To ensure that the university is in To ensure that the university is in compliance with IRS substantiation compliance with IRS substantiation requirements (see IRS Sections 274(d)requirements (see IRS Sections 274(d)(4) and 280F(d)(4)(4) and 280F(d)(4)
To alleviate the significant To alleviate the significant administrative burden, on both administrative burden, on both employees and the university, of employees and the university, of providing the extensive substantiation providing the extensive substantiation required to fulfill IRS reporting required to fulfill IRS reporting requirementsrequirements
Reasons for New PolicyReasons for New Policy
The IRS is auditing higher education The IRS is auditing higher education institutions, specifically for cell institutions, specifically for cell phone/PDA substantiation.phone/PDA substantiation.-- Several universities nationwide are Several universities nationwide are
currently being audited by the IRS.currently being audited by the IRS.
- - Many universities across the nation Many universities across the nation have already implemented or are in the have already implemented or are in the process of adopting similar stipend process of adopting similar stipend programs.programs.
IRS Substantiation IRS Substantiation RequirementsRequirements
Under the current IRS regulations, Under the current IRS regulations, the following information must be the following information must be maintained for maintained for each and every call:each and every call:- Time and date of each callTime and date of each call- Business purpose of each callBusiness purpose of each call- Explanation of business relationship Explanation of business relationship
with all participating parties on each with all participating parties on each callcall
Goals of the Stipend Goals of the Stipend Program:Program:
To relieve employees and To relieve employees and departments of the burden of strict departments of the burden of strict IRS substantiation requirementsIRS substantiation requirements
To improve efficiencies throughout To improve efficiencies throughout the university by processing the university by processing employee stipendsemployee stipends
To give employees more options To give employees more options when choosing service and when choosing service and equipment other than state contractequipment other than state contract
Why Stipends?Why Stipends? Should the university continue with our current Should the university continue with our current
programs, departments would be required to programs, departments would be required to maintain the documentation required by the IRS to maintain the documentation required by the IRS to meet substantiation rules on all university wireless meet substantiation rules on all university wireless phones.phones.
To comply with current IRS rules, employees would To comply with current IRS rules, employees would need to meet monthly with supervisors to separate need to meet monthly with supervisors to separate business and personal calls, along with business and personal calls, along with documentation of time, date, and business documentation of time, date, and business relationship of each business call.relationship of each business call.
The employee would be responsible for reimbursing The employee would be responsible for reimbursing the university the percentage of personal calls from the university the percentage of personal calls from their monthly bill plus any overages.their monthly bill plus any overages.
The time and effort to process IRS documentation The time and effort to process IRS documentation would be extremely cost prohibitive to the university.would be extremely cost prohibitive to the university.
Stipend Stipend ProgramProgram
The stipend program is designed to The stipend program is designed to pay pay
the business use portionthe business use portion
of your bill, given that wireless of your bill, given that wireless phones and internet services are phones and internet services are
currently being used for both currently being used for both business and personal use.business and personal use.
Advantages to Stipend Advantages to Stipend Program:Program:
No IRS documentation requiredNo IRS documentation required No need to distinguish between No need to distinguish between
personal and business callspersonal and business calls No need to carry two cell phonesNo need to carry two cell phones Employees may choose any vendor (no Employees may choose any vendor (no
longer required to stay on state longer required to stay on state contract)contract)
Stipends are paid through Payroll Stipends are paid through Payroll ServicesServices
Stipend AmountsStipend Amounts Voice Plan Level 1Voice Plan Level 1 $50.00$50.00 Voice Plan Level 2Voice Plan Level 2 $65.00$65.00 Voice Plan Level 3Voice Plan Level 3 $80.00$80.00 Data PackageData Package $20.00$20.00 Text MessagingText Messaging $ 5.00$ 5.00 Cell Other $Cell Other $ (VP Approval (VP Approval
Required)Required) Internet Package Internet Package $55.00$55.00 Internet Other $Internet Other $ (VP Approval Required)(VP Approval Required)
• Stipend rates will be periodically reviewed.Stipend rates will be periodically reviewed.• Stipend will be considered taxable income to the Stipend will be considered taxable income to the
employee. employee. • Tax considerations have been taken into account Tax considerations have been taken into account
when determining stipend levels.when determining stipend levels.
EquipmentEquipment
Employees entering the Stipend Employees entering the Stipend Program for the first time will need Program for the first time will need to acquire and maintain their own to acquire and maintain their own equipment.equipment.
As before, cellular devices may not As before, cellular devices may not be purchased using the JMU Small be purchased using the JMU Small Purchase Credit Card.Purchase Credit Card.
ServiceService
Employees should consider choosing Employees should consider choosing a plan that will incorporate the a plan that will incorporate the amount of minutes that will be used amount of minutes that will be used for business and personal calls.for business and personal calls.
Vendors will require credit checks Vendors will require credit checks on new accounts.on new accounts.
Departmental Provided Cell Departmental Provided Cell PhonesPhones
There may be instances where a cell There may be instances where a cell phone has multiple users and may be phone has multiple users and may be deemed a departmental phone. (Ex: On-deemed a departmental phone. (Ex: On-call phone)call phone)
A departmental phone must not be A departmental phone must not be used by or assigned to a specific used by or assigned to a specific individual.individual.
The department is responsible to review The department is responsible to review monthly billing statements for monthly billing statements for departmental phones to confirm the departmental phones to confirm the usage charges are for business purposes.usage charges are for business purposes.
How will stipends be How will stipends be determined?determined?
Approval for a cell phone stipend will be granted in writing Approval for a cell phone stipend will be granted in writing by the Senior Vice President.by the Senior Vice President.
Departments should use this opportunity to evaluate Departments should use this opportunity to evaluate current use and level of business need.current use and level of business need.
The employee’s management will choose stipend amount The employee’s management will choose stipend amount from options listed; amount will be based on business from options listed; amount will be based on business need.need.
Cell phone and internet stipends will be based on one or Cell phone and internet stipends will be based on one or more of the following criteria:more of the following criteria:- Safety- Safety- Required to be contacted on a regular basis- Required to be contacted on a regular basis- Required to be on-call- Required to be on-call- Essential personnel- Essential personnel- Critical decision maker- Critical decision maker- Job function requires home or off-campus access to the - Job function requires home or off-campus access to the Internet of university data services.Internet of university data services.- Other (please provide justification)- Other (please provide justification)
Termination of a StipendTermination of a Stipend
If the employee resigns, is terminated, If the employee resigns, is terminated, transfers departments, or no longer transfers departments, or no longer qualifies for a university stipend, a PAR qualifies for a university stipend, a PAR Form must be submitted to Payroll Form must be submitted to Payroll Services to discontinue Services to discontinue
the stipend.the stipend. Because a stipend is based on primary Because a stipend is based on primary
job, VP approval and recertification is job, VP approval and recertification is required if employee changes primary required if employee changes primary job.job.
How does the Cell How does the Cell Phone and Internet Phone and Internet Stipend Program Stipend Program
work?work?
STEP 1STEP 1
When management determines that there is a When management determines that there is a business need for an employee to receive a cell business need for an employee to receive a cell phone or internet stipend, management will phone or internet stipend, management will print and complete a print and complete a
Supervisor Worksheet & Employee AgreementSupervisor Worksheet & Employee Agreement
and obtain signatures from the following:and obtain signatures from the following:
● ● Dean, AVP or DirectorDean, AVP or Director
● ● Vice PresidentVice President
STEP 2STEP 2
Supervisor completes a Supervisor completes a PAR FormPAR Form for the employee for the stipend for the employee for the stipend
amount. amount.
Once the stipend begins, employee Once the stipend begins, employee will see ½ of their stipend will see ½ of their stipend
amount on each amount on each
semi-monthly paycheck.semi-monthly paycheck.
STEP 3STEP 3 Supervisor meets with employee.Supervisor meets with employee. Supervisor reviews stipend and dollar Supervisor reviews stipend and dollar
amount with employee and employee signs amount with employee and employee signs Supervisor Worksheet and Employee Supervisor Worksheet and Employee Agreement.Agreement.
By agreeing to the stipend, employees will By agreeing to the stipend, employees will agree that their wireless number may be agree that their wireless number may be distributed for business use.distributed for business use.
Supervisor directs employee to contact JMU Supervisor directs employee to contact JMU Telecommunications at (540) 568-6471 for Telecommunications at (540) 568-6471 for additional details regarding JMU discounts additional details regarding JMU discounts on wireless equipment and service.on wireless equipment and service.
STEP 5STEP 5
Supervisor submits a completed Supervisor submits a completed PAR FormPAR Form
and and Supervisor Worksheet and Supervisor Worksheet and
Employee AgreementEmployee Agreement to Human to Human Resources (MSC 7009).Resources (MSC 7009).
Cell Phone /Internet Cell Phone /Internet Contacts:Contacts:
For additional information, questions, or For additional information, questions, or comments, please contact JMU comments, please contact JMU Telecommunications. We are here to help!Telecommunications. We are here to help!
Cell Phone InformationCell Phone InformationSusan Dean, JMU Telecom, 568-6471, Susan Dean, JMU Telecom, 568-6471,
[email protected]@jmu.edu Roya Edelstein, JMU Telecom, 568-6561, Roya Edelstein, JMU Telecom, 568-6561,
[email protected]@jmu.edu
Internet Information:Internet Information:Norma Burkholder, JMU Telecom, 568-3484, Norma Burkholder, JMU Telecom, 568-3484,
[email protected]@jmu.eduKathy Pitts, JMU Telecom, 568-6108, Kathy Pitts, JMU Telecom, 568-6108,