COE_Cellular_Phone_Policy by sushaifj


									                                                 College Cellular Phone/Internet Policy

Policy Background

The updating of University Expenditure Policies resulted in changes to the cellular phone policy.
IRS tax rules require the substantiation of business purpose for each cellular call made. Without
this substantiation, calls are deemed personal and represent a taxable benefit to the employee.
The University provides three alternatives for the provision of cellular phones to employees as
defined below in the policy.

University-Provided Cellular Phones-(Accountable Plan) Cellular phones may be provided
through the University’s preferred provider of cellular telephone service through UNITS.
University-provided cellular phones are intended for business use only. In accordance with IRS
documentation requirements, departments must retain phone bills and be able to distinguish
between business and personal use. Personal use of up to 10 minutes per month will be
considered “de minimis” and will not require reimbursement. If an employee exceeds this
threshold, the employee must reimburse the University for all of their personal use.
Reimbursement to the University may be made monthly or quarterly according to policy. (See
Policy for Personal Use of University-Provided Cellular Phones at http://www.ctlr.ohio-

Taxable Allowance Option for Cellular Phones-(Non-Accountable Plan) To reduce the
administrative burdens associated with tracking business and personal use of University-provided
cellular phones, colleges and vice presidential units have the option of offering a taxable
allowance for cellular phone service, similar to those provided under the Home Internet
Connectivity Policy. Under this option, University payment or reimbursement for cellular phone
service will be reported as taxable income on the employee’s W-2 form. No record keeping of
business and personal use is required for central University purposes.

Processing of          If the allowance is to be paid directly to an employee, process
Taxable                additional pay through Human Resources, using the TXR earnings code.
                       If the University is paying the vendor for the cellular phone service,
                       process the payment via 100W (for UNITS) and record an adjustment to
                       the employee’s taxable gross income in the HR system, using the TGI
                       earnings code.

Reimbursement for Business Calls on Personal Cellular Phones-If the business use of a cellular
telephone is infrequent, or if the personal use exceeds business use, the department should require
the employee to provide his/her own cellular telephone and submit reimbursement requests for
business calls. A copy of the cellular phone bill, detailing the individual calls to be reimbursed,
must accompany the reimbursement request. The reimbursement amount is to be computed based
on business use as a percentage of total use. Reimbursement is processed using the PRO

COE Cellular Phone/Internet Policy (Rev. 6/2008)                                           Page 1
                                                 College Cellular Phone/Internet Policy
Taxable Allowance for Home Internet Connectivity-(Non-Accountable Plan)

Please refer to the complete policy at the following link. Individuals must provide detailed
invoices showing the amounts paid for internet access. Internet reimbursements are processed in
the same manner as the cellular phone taxable allowance.


In all instances, use of the University Purchasing Card to pay for cellular phone service and
equipment is prohibited.

College Procedures

Approval should be requested utilizing the Request for Payment of Cellular Phone and Internet
Service/Allowance Form. Approval should be authorized by the appropriate individual as
outlined in the College Internal Control Structure (i.e. department chair or fiscal administrator).
Individuals must choose either the taxable allowance or the University-provided option for
processing the request. Each request must be forwarded to the College’s Director for Finance and
Business Operations for approval prior to initiating the entry in to HRIS. The College will keep a
copy of the approved request and forward the original back to the department for data entry.
HRIS approval will be completed by the College as requested.

Non-Accountable Plan
The reimbursement amounts allowed for approved individuals are as follows:

        $50 (excluding taxes) for phone service only
        $50 (excluding taxes) for phone data service only
        $80 (excluding taxes) a month for bundled/combined data and phone service
        Internet monthly service not to exceed the maximum amount of $75/month and not to
        include wireless equipment. Maximum amounts will be reduced for internet service
        provided via phone data service plans.

Reimbursement (excluding taxes) for cellular phone equipment is as follows:

        $150 maximum for a standard cell phone (itemized receipt required)
        $500 maximum for integrated wireless handheld devices (itemized receipt required)

Accountable Plan
Individuals choosing the University-provided plan option will be asked to certify business use on
a quarterly basis. Certification will include a review of the cell phone detail for the quarter,
identification of any personal calls, and reimbursement of any personal calls exceeding those
deemed “de minimus.”

COE Cellular Phone/Internet Policy (Rev. 6/2008)                                           Page 2

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