Cell Phone and Internet Stipend Program For Supervisors (TRANSITION EMPLOYEES)

Stipend Program Steering Committee Towana Moore Associate VP of Business Services John Knight AVP, Finance Dale Hulvey AVP, Information Technology Jill Eckard Director, Payroll Services Michael Woolman Director, Telecommunications Norma Burkholder Telecommunications Roya Edelstein Telecommunications Kathy Pitts Telecommunications Susan Dean Telecommunications

Let’s talk about the Stipend Program... Because of business need, some employees currently have wireless phone service and/or internet through the university. The service is currently being paid for by their department. Because of business need, some employees currently have wireless phone service and/or internet through the university. The service is currently being paid for by their department. Starting with the Division of Administration & Finance, employees will now transition from university accounts to personal accounts and the new Stipend Program. Starting with the Division of Administration & Finance, employees will now transition from university accounts to personal accounts and the new Stipend Program.

How will the stipend be determined? 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. 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. The amount will be placed on the employee’s paycheck and will appear semi-monthly.

Reasons for Stipend Program To ensure that the university is in compliance with IRS substantiation requirements (see IRS Sections 274(d)(4) and 280F(d)(4) 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 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 The IRS is auditing higher education institutions, specifically for cell phone/PDA substantiation. 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 Under the current IRS regulations, the following information must be maintained for each and every call: 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: To relieve employees and departments of the burden of strict IRS substantiation requirements To relieve employees and departments of the burden of strict IRS substantiation requirements To improve efficiencies throughout the university by processing employee stipends To improve efficiencies throughout the university by processing employee stipends To give employees more options when choosing service and equipment other than state contract To give employees more options when choosing service and equipment other than state contract

Why Stipends? 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. 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. 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 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. The time and effort to process IRS documentation would be extremely cost prohibitive to the university.

Stipend Program 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: No IRS documentation required No IRS documentation required No need to distinguish between personal and business calls No need to distinguish between personal and business calls No need to carry two cell phones No need to carry two cell phones Employees may choose any vendor (no longer required to stay on state contract) Employees may choose any vendor (no longer required to stay on state contract) Employees may move (port) their business phone numbers to their personal accounts Employees may move (port) their business phone numbers to their personal accounts Stipends are paid through Payroll Services Stipends are paid through Payroll Services

Stipend Amounts Voice Plan Level 1$50.00 Voice Plan Level 1$50.00 Voice Plan Level 2$65.00 Voice Plan Level 2$65.00 Voice Plan Level 3$80.00 Voice Plan Level 3$80.00 Data Package$20.00 Data Package$20.00 Text Messaging$ 5.00 Text Messaging$ 5.00 Cell Other $(VP Approval Required) Cell Other $(VP Approval Required) Internet Package $55.00 Internet Package $55.00 Internet Other $(VP Approval Required) Internet Other $(VP Approval Required) Stipend rates will be periodically reviewed. Stipend rates will be periodically reviewed. Stipend will be considered taxable income to the employee. Stipend will be considered taxable income to the employee. Tax considerations have been taken into account when determining stipend levels. Tax considerations have been taken into account when determining stipend levels.

Equipment Employees who currently have university cell phones may use their existing equipment, however, equipment must be returned upon leaving the university. Employees who currently have university cell phones may use their existing equipment, however, equipment must be returned upon leaving the university. Employees entering the Stipend Program for the first time will need to acquire and maintain their own equipment. Employees entering the Stipend Program for the first time will need to acquire and maintain their own equipment. If employee moves to a new vendor when transitioning from their university account to their personal account, new equipment will need to be purchased. University equipment will need to be returned to Telecommunications. If employee moves to a new vendor when transitioning from their university account to their personal account, new equipment will need to be purchased. University equipment will need to be returned to Telecommunications. As before, cellular devices may not be purchased using the JMU Small Purchase Credit Card. As before, cellular devices may not be purchased using the JMU Small Purchase Credit Card.

Service When transitioning from a university account to a personal account, employees should consider choosing a plan that will incorporate the amount of minutes that will be used for business and personal calls. When transitioning from a university account to a personal account, employees should consider choosing a plan that will incorporate the amount of minutes that will be used for business and personal calls. When transitioning from a university account to a personal account, a new contract will be required from the vendor. When transitioning from a university account to a personal account, a new contract will be required from the vendor. Vendors will require credit checks. Vendors will require credit checks.

Departmental Provided Cell Phones There may be instances where a cell phone has multiple users and may be deemed a departmental phone. (Ex: On-call phone) 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. 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. 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? Approval for a cell phone stipend will be granted in writing by the Senior Vice President. 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. 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. 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: 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 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 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. Because a stipend is based on primary job, VP approval and recertification is required if employee changes primary job.

JMU Billing Information Due to lag time in monthly billing and call detail from vendors, JMU departments will continue to receive billing for two to three months after transitions take place.

Some information about porting... The term “porting” a wireless number means to keep your existing wireless number and move it to another vendor. The term “porting” a wireless number means to keep your existing wireless number and move it to another vendor. The employee may port (move) their existing business number to their personal account. The employee may port (move) their existing business number to their personal account.-OR- The employee may disconnect their business number and keep their existing personal number. The employee may disconnect their business number and keep their existing personal number. Porting a number may take the vendor several hours to several days. Porting a number may take the vendor several hours to several days. By agreeing to the stipend, employees will agree that their wireless number may be distributed for business use. By agreeing to the stipend, employees will agree that their wireless number may be distributed for business use. A Porting Form will be provided. A Porting Form will be provided. If possible, please bring a copy of your personal cell phone bill when you meet with Telecom. If possible, please bring a copy of your personal cell phone bill when you meet with Telecom. Vendors may ask for the following information from employees to coordinate porting: Vendors may ask for the following information from employees to coordinate porting: - Name on personal account - Account number - Social Security Number - Driver’s license number and expiration date - Telephone number - Home billing address

How will the cell phone and internet transition process work?

STEP 1 Stipend Program will be presented to Supervisors.

STEP 2 Stipends will be determined by Management. A Supervisor Worksheet & Employee Agreement will be completed for each employee receiving a stipend.

Signatures The following signatures will be required on the Supervisor Worksheet and Employee Agreement: ● Dean, AVP or Director ● Vice President (cell phones only)

STEP 3 During the transition period, management will distribute a copy of the Supervisor Worksheet and Employee Agreement to the following: to the following: 1. Supervisor 2. Telecommunications

STEP 4 Supervisor will fill out the PAR Form.

Filling out the PAR FORM

Section I Employee name and E-ID Employee name and E-ID

Section II Will contain start date (beginning of pay cycle) Will contain start date (beginning of pay cycle) Start date of 25 th of the month – will generate payment for the middle of the next month Start date of 25 th of the month – will generate payment for the middle of the next month Start date of 10 th of the month – will generate payment for the end of the current month. Start date of 10 th of the month – will generate payment for the end of the current month. Account Code – – University Stipends Account Code – – University Stipends No retroactive stipends No retroactive stipends No end date necessary. No end date necessary. Submit to HR by PAR form deadlines on Payroll Calendar Submit to HR by PAR form deadlines on Payroll Calendar

Section III Mark the Action/Reason section – “Additional Pay” Mark the Action/Reason section – “Additional Pay” Record notes as “Cell Phone/ Internet Connection Stipend” Record notes as “Cell Phone/ Internet Connection Stipend” Stipend level may be recorded in the notes if you wish. Stipend level may be recorded in the notes if you wish.

Section IV Compensation – Enter “Additional Pay – Other” Compensation – Enter “Additional Pay – Other” Conditions of Employment – “Continuous Monthly Amount” Conditions of Employment – “Continuous Monthly Amount” Amount – Place Semi-Monthly Amount Amount – Place Semi-Monthly Amount *** Amount will be ½ of the total amount that the employee is to receive.

STEP 5 Stipend Program will be presented to Employees.

STEP 6 1. Supervisor meets with employee to review stipend and dollar amount and employee signs agreement. 2. Supervisor directs the employee to contact JMU Telecommunications to move their business account to a personal account.

Help during the transition... Telecom staff will help each employee through the process of transitioning from their JMU account to a personal account. Telecom staff will provide information regarding: Vendor discounts Vendor discounts Equipment Equipment Service plans Service plans Porting numbers Porting numbers Billing Billing

STEP 7 Submit Forms Please attach a copy of the Supervisor Worksheet and Employee Agreement to the PAR Form and submit to Human Resources (MSC 7009).

STEP 8 Budget Revision 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. 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 (Telecommunications Services) to personal services expenditure code of (University Stipends). Funds will need to be moved from the non-personal expenditure code of (Telecommunications Services) to personal services expenditure code of (University Stipends).

Cell Phone Transition Contacts: 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, , Roya Edelstein, JMU Telecom, , Internet Information: Norma Burkholder, JMU Telecom, , Kathy Pitts, JMU Telecom, ,