Transcript Cell Phone and Internet Stipend Program For Supervisors (NEW PARTICIPANTS) Stipend Program Steering Committee Towana Moore Associate VP of Business Services 540 568 2535 e-mail: [email protected] Michael.

Cell Phone and Internet Stipend Program
For Supervisors
(NEW PARTICIPANTS)
Stipend Program Steering Committee
Towana Moore
Associate VP of Business Services
540 568 2535
e-mail: [email protected]
Michael Woolman
Director, Telecommunications
540 568 3119
e-mail: [email protected]
John Knight
AVP, Finance
540 568 6433
e-mail: [email protected]
Norma Burkholder
Telecommunications
540 568 3484
e-mail: [email protected]
Dale Hulvey
AVP, Information Technology
540 568 706
e-mail: [email protected]
Roya Edelstein
Telecommunications
540 568 6561
e-mail: [email protected]
Jill Eckard
Director, Payroll Services
540 568 3402
e-mail: [email protected]
Kathy Pitts
Telecommunications
540 568 6108
e-mail: [email protected]
Susan Dean
Telecommunications
540 568 6471
e-mail: [email protected]
Let’s talk about the Stipend Program . . .
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Because of business need, and in the course of carrying
out job responsibilities, wireless phone and internet
services are becoming a preferred method of carrying
out business communications.
The Cell Phone and Internet Stipend Program is
designed to compensate employees for the business
use portion of their service.
How will the stipend be determined?
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A stipend amount will be carefully chosen from
the list of pre-determined stipend amounts by
management. Amounts will be based on current
usage, need, etc.
The amount will be placed on the employee’s
paycheck and will appear semi-monthly.
Reasons for Stipend Program
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To ensure that the university is in compliance
with IRS substantiation requirements (see IRS
Sections 274(d)(4) and 280F(d)(4)
To alleviate the significant administrative
burden, on both employees and the university,
of providing the extensive substantiation
required to fulfill IRS reporting requirements
Reasons for New Policy
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The IRS is auditing higher education
institutions, specifically for cell phone/PDA
substantiation.
- Several universities nationwide are currently being
audited by the IRS.
- Many universities across the nation have already
implemented or are in the process of adopting
similar stipend programs.
IRS Substantiation Requirements
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Under the current IRS regulations, the following
information must be maintained for each and
every call:
-
Time and date of each call
Business purpose of each call
Explanation of business relationship with all
participating parties on each call
Goals of the Stipend Program:
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To relieve employees and departments of the
burden of strict IRS substantiation requirements
To improve efficiencies throughout the
university by processing employee stipends
To give employees more options when choosing
service and equipment other than state contract
Why Stipends?
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Should the university continue with our current programs,
departments would be required to maintain the documentation
required by the IRS to meet substantiation rules on all university
wireless phones.
To comply with current IRS rules, employees would need to
meet monthly with supervisors to separate business and personal
calls, along with documentation of time, date, and business
relationship of each business call.
The employee would be responsible for reimbursing the
university the percentage of personal calls from their monthly
bill plus any overages.
The time and effort to process IRS documentation would be
extremely cost prohibitive to the university.
Stipend Program
The stipend program is designed to pay
the business use portion
of your bill, given that wireless phones and
internet services are currently being used for
both business and personal use.
Advantages to Stipend Program:
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No IRS documentation required
No need to distinguish between personal and
business calls
No need to carry two cell phones
Employees may choose any vendor (no longer
required to stay on state contract)
Stipends are paid through Payroll Services
Stipend Amounts
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Voice Plan Level 1
Voice Plan Level 2
Voice Plan Level 3
Data Package
Text Messaging
Cell Other $
Internet Package
Internet Other $
$50.00
$65.00
$80.00
$20.00
$ 5.00
(VP Approval Required)
$55.00
(VP Approval Required)
Stipend rates will be periodically reviewed.
Stipend will be considered taxable income to the employee.
Tax considerations have been taken into account when
determining stipend levels.
Equipment
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Employees entering the Stipend Program for the
first time will need to acquire and maintain their
own equipment.
As before, cellular devices may not be purchased
using the JMU Small Purchase Credit Card.
Service
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Employees should consider choosing a plan that
will incorporate the amount of minutes that will
be used for business and personal calls.
Vendors will require credit checks on new
accounts.
Departmental Provided Cell Phones
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There may be instances where a cell phone has
multiple users and may be deemed a
departmental phone. (Ex: On-call phone)
A departmental phone must not be used by
or assigned to a specific individual.
The department is responsible to review
monthly billing statements for departmental
phones to confirm the usage charges are for
business purposes.
How will stipends be determined?
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Approval for a cell phone stipend will be granted in writing by the Senior
Vice President.
Departments should use this opportunity to evaluate current use and level of
business need.
The employee’s management will choose stipend amount from options listed;
amount will be based on business need.
Cell phone and internet stipends will be based on one or more of the
following criteria:
- Safety
- Required to be contacted on a regular basis
- Required to be on-call
- Essential personnel
- Critical decision maker
- Job function requires home or off-campus access to the Internet of
university data services.
- Other (please provide justification)
Termination of a Stipend
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If the employee resigns, is terminated, transfers
departments, or no longer qualifies for a
university stipend, a PAR Form must be
submitted to Payroll Services to discontinue
the stipend.
Because a stipend is based on primary job, VP
approval and recertification is required if
employee changes primary job.
How does the Cell Phone
and Internet Stipend
Program work?
STEP 1
If management determines that there is a business need
for an employee to receive a cell phone or internet
stipend, management will print and complete a
Supervisor Worksheet & Employee Agreement
and obtain signatures from the following:
● Dean, AVP or Director
● Vice President (cell phones only)
STEP 2
Supervisor completes a PAR Form for the
employee for the stipend amount.
Once the stipend begins, employee will see
½ of their stipend amount on each
semi-monthly paycheck.
Filling out the
PAR FORM
Section I
 Employee
name and E-ID
Section II
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Will contain start date (beginning of pay cycle)
Start date of 25th of the month – will generate payment
for the middle of the next month
Start date of 10th of the month – will generate payment
for the end of the current month.
Account Code – 114540 – University Stipends
No retroactive stipends
No end date necessary.
Submit to HR by PAR form deadlines on Payroll
Calendar
Section III
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Mark the Action/Reason section – “Additional
Pay”
Record notes as “Cell Phone/ Internet
Connection Stipend”
Stipend level may be recorded in the notes if
you wish.
Section IV
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Compensation – Enter “Additional Pay – Other”
Conditions of Employment – “Continuous Monthly
Amount”
Amount – Place Semi-Monthly Amount
*** Amount will be ½ of the total amount that the
employee is to receive.
STEP 3
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Supervisor meets with employee.
Supervisor reviews stipend and dollar amount with
employee and employee signs Supervisor Worksheet
and Employee Agreement.
By agreeing to the stipend, employees will agree that
their wireless number may be distributed for business
use.
Supervisor directs employee to contact JMU
Telecommunications at (540) 568-6471 for additional
details regarding JMU discounts on wireless equipment
and service.
STEP 4
Supervisor submits a completed
PAR Form
and
Supervisor Worksheet and Employee Agreement
to Human Resources (MSC 7009).
STEP 5
Budget Revision
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Departments will need to complete a JMU Budget
Revision Form to move the necessary dollars from the
non-personal budget amount to the personal services
budget.
Funds will need to be moved from the non-personal
expenditure code of 121800 (Telecommunications
Services) to personal services expenditure code of
114540 (University Stipends).
Cell Phone Transition Contacts:
For additional information, questions, or comments, please contact
JMU Telecommunications. We are here to help!
Cell Phone Information
Susan Dean, JMU Telecom, 568-6471, [email protected]
Roya Edelstein, JMU Telecom, 568-6561, [email protected]
Internet Information:
Norma Burkholder, JMU Telecom, 568-3484, [email protected]
Kathy Pitts, JMU Telecom, 568-6108, [email protected]