1. Cell Phone and Internet Stipend Program For Supervisors (NEW PARTICIPANTS)

2. Stipend Program Steering Committee Towana Moore Associate VP of Business Services 540 568 2535 e-mail: mooreth@jmu.edu mooreth@jmu.edu John Knight AVP, Finance 540 568 6433 e-mail: knightjf@jmu.edu knightjf@jmu.edu Dale Hulvey AVP, Information Technology 540 568 706 e-mail: hulveydb@jmu.edu hulveydb@jmu.edu Jill Eckard Director, Payroll Services 540 568 3402 e-mail: eckardjs@jmu.edu eckardjs@jmu.edu Michael Woolman Director, Telecommunications 540 568 3119 e-mail: woolmamh@jmu.eduwoolmamh@jmu.edu Norma Burkholder Telecommunications 540 568 3484 e-mail: burkhonj@jmu.eduburkhonj@jmu.edu Roya Edelstein Telecommunications 540 568 6561 e-mail: edelstrx@jmu.eduedelstrx@jmu.edu Kathy Pitts Telecommunications 540 568 6108 e-mail: pittskt@jmu.edupittskt@jmu.edu Susan Dean Telecommunications 540 568 6471 e-mail: deansj@jmu.edudeansj@jmu.edu

3. Let’s talk about the Stipend Program... 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. 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. The Cell Phone and Internet Stipend Program is designed to compensate employees for the business use portion of their service.

4. 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.

5. 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

6. 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.

7. 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

8. 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

9. 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.

10. 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.

11. 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) Stipends are paid through Payroll Services Stipends are paid through Payroll Services

12. 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.

13. Equipment 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. 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.

14. Service Employees should consider choosing a plan that will incorporate the amount of minutes that will be used for business and personal calls. 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. Vendors will require credit checks on new accounts.

15. 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.

16. 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)

17. 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.

18. How does the Cell Phone and Internet Stipend Program work?

19. 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)

20. 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.

21. Filling out the PAR FORM

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

23. 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 – 114540 – University Stipends Account Code – 114540 – 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

24. 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.

25. 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.

26. STEP 3 Supervisor meets with employee. Supervisor meets with employee. Supervisor reviews stipend and dollar amount with employee and employee signs Supervisor Worksheet and Employee Agreement. 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. 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. Supervisor directs employee to contact JMU Telecommunications at (540) 568-6471 for additional details regarding JMU discounts on wireless equipment and service.

27. STEP 4 Supervisor submits a completed PAR Form and Supervisor Worksheet and Employee Agreement to Human Resources (MSC 7009).

28. STEP 5 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 121800 (Telecommunications Services) to personal services expenditure code of 114540 (University Stipends). 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).

29. 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, 568-6471, deansj@jmu.edu deansj@jmu.edu Roya Edelstein, JMU Telecom, 568-6561, edelstrx@jmu.edu edelstrx@jmu.edu Internet Information: Norma Burkholder, JMU Telecom, 568-3484, burkhonj@jmu.edu burkhonj@jmu.edu Kathy Pitts, JMU Telecom, 568-6108, pittskt@jmu.edu pittskt@jmu.edu