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

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 Agenda

Federal tax law (IRS):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 Policy Background

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

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 GETit General Information: Stipend

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: Device

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 556-mobi (6624) to setup a consultation * except in very limited circumstances (to be covered later) General Information: Plan

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 556-mobi (6624) General Information: Transition

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

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 Specifics (cont.)

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. Stipend Eligibility

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! Recipient Responsibilities

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 Security Considerations

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”)Policy Exception Form 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)Cell Phone Usage Log University-Owned Wireless Devices

Any exceptions to the policy require approval by the president, senior vice president, or vice president using the Policy Exception Form (check “Other”)Policy Exception Form 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

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 Miscellaneous (cont.)

Applying Determine business use and agree on stipend amount(s) with supervisor Request stipend through GETit Stipend is approved by GETit Approver Employee receives 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)MonthlyBiweekly 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 Procedure for Acquiring a Stipend

Useful Links Links from 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)Variant Expense Rate Table GETit IRS Questions: