Is my cell phone reimbursement taxable?|
No, The IRS considers electronic communication devices to be a working condition fringe benefit, the value of which is excludable from the employees income. As such, the IRS requires the employee must maintain the type of cell phone coverage that is reasonably related to the needs of the employers business, and the reimbursement must be reasonably calculated so as not to exceed expenses the employee actually incurred in maintaining the cell phone. Reimbursements must not exceed the amount of the employees service plan or they may become fully taxable.
How do I receive a reimbursement for my electronic device and or service plan?|
Complete and submit the employee agreement for reimbursement of electronic device/service form obtaining the proper approval signatures. This form will be submitted annually to Accounting Services no later than June 15th. Reimbursements expire at the end of each fiscal year (i.e. May 31).
How and when will my reimbursement be issued?|
Payment will be made per month and issued as a reimbursement included in the regularly scheduled payroll check. The reimbursement begins in the month the form is received and approved if this occurs between the first day and the 15th day of the month. If the form is received the 16th through the last day of the month, reimbursement begins the following month.
How does my department get expensed for my electronic device?|
Upon receipt of your approved reimbursement form accounts payable will add your department account to be charged each month during the fiscal year for which the reimbursement has been requested and remains valid and forward to payroll for processing. Accounts payable needs to be notified immediately of any changes to your reimbursement.
How do I determine my reimbursement amount?|
Ongoing monthly reimbursement amounts are determined by the approving supervisor, based upon his or her judgment of the expected campus required usage. The reimbursement may not be used as a salary supplement and the University will not reimburse an amount greater than the employees current service plan. Monthly reimbursement levels for electronic communication device service plans are established as follows: ($50 or less; for coaches, admissions, directors, deans), Medium ($75 or less; for Vice Presidents) and High ($130 or less, for President).
An employee will be required to certify to the University that the reimbursement amount is not greater than the employees current plan.
Can my cell phone be used for personal use?|
The cell phone service is personally owned and may therefore be used for both personal and business calls. An employee with a cellular telephone reimbursement must maintain an active cell phone contract for the life of the reimbursement. Using a phone or other communication devices in ways inconsistent with University policy, local laws, state laws or federal laws will result in immediate cancellation of the communications device stipend.
Do I qualify for a University owned device/service plan?|
This plan is reserved for employees whose accessibility is required for public safety and emergency services.. All University-provided devices shall be used for business-related purposes only. University-owned devices should not be used for personal reasons.
As an approving supervisor of an employee reimbursement for cell phone what is my responsibility?|
Annually review communication device needs in his or her department to determine if reimbursements should be changed, continued, discontinued, or if additional reimbursements are needed|
Obtain annual certifications from employees that the reimbursement amount does not exceed the service plan amount.|
Complete reimbursement renewal authorizations by June 15, and;|
Notify the appropriate departments if the employee no longer requires a reimbursement due to responsibility changes or termination.|
As a Vice President what is my responsibility?|
You are responsible for ensuring that the appropriate business need device level and requests for reimbursement are within this policy and include the appropriate supporting documentation.