Cell Phone and Internet Stipend Program For Supervisors

(NEW PARTICIPANTS)

Stipend Program Steering Stipend Program Steering CommitteeCommittee

Towana Moore Towana Moore Associate VP of Business ServicesAssociate VP of Business Services540 568 2535540 568 2535e-mail: e-mail: mooreth@jmu.edumooreth@jmu.edu

John Knight John Knight AVP, FinanceAVP, Finance540 568 6433540 568 6433e-mail: e-mail: knightjf@jmu.eduknightjf@jmu.edu

Dale Hulvey Dale Hulvey AVP, Information TechnologyAVP, Information Technology540 568 706540 568 706e-mail: hulveydb@jmu.edue-mail: hulveydb@jmu.edu

Jill Eckard Jill Eckard Director, Payroll ServicesDirector, Payroll Services540 568 3402540 568 3402e-mail: eckardjs@jmu.edue-mail: eckardjs@jmu.edu

Michael WoolmanMichael WoolmanDirector, TelecommunicationsDirector, Telecommunications540 568 3119540 568 3119e-mail: woolmamh@jmu.edue-mail: woolmamh@jmu.edu

Norma BurkholderNorma BurkholderTelecommunicationsTelecommunications540 568 3484540 568 3484e-mail: burkhonj@jmu.edue-mail: burkhonj@jmu.edu

Roya EdelsteinRoya EdelsteinTelecommunicationsTelecommunications540 568 6561540 568 6561e-mail: edelstrx@jmu.edue-mail: edelstrx@jmu.edu

Kathy PittsKathy PittsTelecommunicationsTelecommunications540 568 6108540 568 6108e-mail: pittskt@jmu.edue-mail: pittskt@jmu.edu

Susan DeanSusan DeanTelecommunicationsTelecommunications540 568 6471540 568 6471e-mail: deansj@jmu.edue-mail: deansj@jmu.edu

Let’s talk about the Stipend Let’s talk about the Stipend Program . . .Program . . .

Because of business need, and in the course Because of business need, and in the course of carrying out job responsibilities, wireless of carrying out job responsibilities, wireless phone and internet services are becoming a phone and internet services are becoming a preferred method of carrying out business preferred method of carrying out business communications.communications.

The Cell Phone and Internet Stipend The Cell Phone and Internet Stipend Program is designed to compensate Program is designed to compensate employees for the employees for the business use portionbusiness use portion of of their service.their service.

How will the stipend be How will the stipend be determined?determined?

A stipend amount will be carefully A stipend amount will be carefully chosen from the list of pre-chosen from the list of pre-determined stipend amounts by determined stipend amounts by management. Amounts will be based management. Amounts will be based on current usage, need, etc.on current usage, need, etc.

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

Reasons for Stipend Reasons for Stipend ProgramProgram

To ensure that the university is in To ensure that the university is in compliance with IRS substantiation compliance with IRS substantiation requirements (see IRS Sections 274(d)requirements (see IRS Sections 274(d)(4) and 280F(d)(4)(4) and 280F(d)(4)

To alleviate the significant To alleviate the significant administrative burden, on both administrative burden, on both employees and the university, of employees and the university, of providing the extensive substantiation providing the extensive substantiation required to fulfill IRS reporting required to fulfill IRS reporting requirementsrequirements

Reasons for New PolicyReasons for New Policy

The IRS is auditing higher education The IRS is auditing higher education institutions, specifically for cell institutions, specifically for cell phone/PDA substantiation.phone/PDA substantiation.-- Several universities nationwide are Several universities nationwide are

currently being audited by the IRS.currently being audited by the IRS.

- - Many universities across the nation Many universities across the nation have already implemented or are in the have already implemented or are in the process of adopting similar stipend process of adopting similar stipend programs.programs.

IRS Substantiation IRS Substantiation RequirementsRequirements

Under the current IRS regulations, Under the current IRS regulations, the following information must be the following information must be maintained for maintained for each and every call:each and every call:- Time and date of each callTime and date of each call- Business purpose of each callBusiness purpose of each call- Explanation of business relationship Explanation of business relationship

with all participating parties on each with all participating parties on each callcall

Goals of the Stipend Goals of the Stipend Program:Program:

To relieve employees and To relieve employees and departments of the burden of strict departments of the burden of strict IRS substantiation requirementsIRS substantiation requirements

To improve efficiencies throughout To improve efficiencies throughout the university by processing the university by processing employee stipendsemployee stipends

To give employees more options To give employees more options when choosing service and when choosing service and equipment other than state contractequipment other than state contract

Why Stipends?Why Stipends? Should the university continue with our current Should the university continue with our current

programs, departments would be required to programs, departments would be required to maintain the documentation required by the IRS to maintain the documentation required by the IRS to meet substantiation rules on all university wireless meet substantiation rules on all university wireless phones.phones.

To comply with current IRS rules, employees would To comply with current IRS rules, employees would need to meet monthly with supervisors to separate need to meet monthly with supervisors to separate business and personal calls, along with business and personal calls, along with documentation of time, date, and business documentation of time, date, and business relationship of each business call.relationship of each business call.

The employee would be responsible for reimbursing The employee would be responsible for reimbursing the university the percentage of personal calls from the university the percentage of personal calls from their monthly bill plus any overages.their monthly bill plus any overages.

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

Stipend Stipend ProgramProgram

The stipend program is designed to The stipend program is designed to pay pay

the business use portionthe business use portion

of your bill, given that wireless of your bill, given that wireless phones and internet services are phones and internet services are

currently being used for both currently being used for both business and personal use.business and personal use.

Advantages to Stipend Advantages to Stipend Program:Program:

No IRS documentation requiredNo IRS documentation required No need to distinguish between No need to distinguish between

personal and business callspersonal and business calls No need to carry two cell phonesNo need to carry two cell phones Employees may choose any vendor (no Employees may choose any vendor (no

longer required to stay on state longer required to stay on state contract)contract)

Stipends are paid through Payroll Stipends are paid through Payroll ServicesServices

Stipend AmountsStipend Amounts Voice Plan Level 1Voice Plan Level 1 $50.00$50.00 Voice Plan Level 2Voice Plan Level 2 $65.00$65.00 Voice Plan Level 3Voice Plan Level 3 $80.00$80.00 Data PackageData Package $20.00$20.00 Text MessagingText Messaging $ 5.00$ 5.00 Cell Other $Cell Other $ (VP Approval (VP Approval

Required)Required) Internet Package Internet Package $55.00$55.00 Internet Other $Internet Other $ (VP Approval Required)(VP Approval Required)

• Stipend rates will be periodically reviewed.Stipend rates will be periodically reviewed.• Stipend will be considered taxable income to the Stipend will be considered taxable income to the

employee. employee. • Tax considerations have been taken into account Tax considerations have been taken into account

when determining stipend levels.when determining stipend levels.

EquipmentEquipment

Employees entering the Stipend Employees entering the Stipend Program for the first time will need Program for the first time will need to acquire and maintain their own to acquire and maintain their own equipment.equipment.

As before, cellular devices may not As before, cellular devices may not be purchased using the JMU Small be purchased using the JMU Small Purchase Credit Card.Purchase Credit Card.

ServiceService

Employees should consider choosing Employees should consider choosing a plan that will incorporate the a plan that will incorporate the amount of minutes that will be used amount of minutes that will be used for business and personal calls.for business and personal calls.

Vendors will require credit checks Vendors will require credit checks on new accounts.on new accounts.

Departmental Provided Cell Departmental Provided Cell PhonesPhones

There may be instances where a cell There may be instances where a cell phone has multiple users and may be phone has multiple users and may be deemed a departmental phone. (Ex: On-deemed a departmental phone. (Ex: On-call phone)call phone)

A departmental phone must not be A departmental phone must not be used by or assigned to a specific used by or assigned to a specific individual.individual.

The department is responsible to review The department is responsible to review monthly billing statements for monthly billing statements for departmental phones to confirm the departmental phones to confirm the usage charges are for business purposes.usage charges are for business purposes.

How will stipends be How will stipends be determined?determined?

Approval for a cell phone stipend will be granted in writing Approval for a cell phone stipend will be granted in writing by the Senior Vice President.by the Senior Vice President.

Departments should use this opportunity to evaluate Departments should use this opportunity to evaluate current use and level of business need.current use and level of business need.

The employee’s management will choose stipend amount The employee’s management will choose stipend amount from options listed; amount will be based on business from options listed; amount will be based on business need.need.

Cell phone and internet stipends will be based on one or Cell phone and internet stipends will be based on one or more of the following criteria:more of the following criteria:- Safety- Safety- Required to be contacted on a regular basis- Required to be contacted on a regular basis- Required to be on-call- Required to be on-call- Essential personnel- Essential personnel- Critical decision maker- Critical decision maker- Job function requires home or off-campus access to the - Job function requires home or off-campus access to the Internet of university data services.Internet of university data services.- Other (please provide justification)- Other (please provide justification)

Termination of a StipendTermination of a Stipend

If the employee resigns, is terminated, If the employee resigns, is terminated, transfers departments, or no longer transfers departments, or no longer qualifies for a university stipend, a PAR qualifies for a university stipend, a PAR Form must be submitted to Payroll Form must be submitted to Payroll Services to discontinue Services to discontinue

the stipend.the stipend. Because a stipend is based on primary Because a stipend is based on primary

job, VP approval and recertification is job, VP approval and recertification is required if employee changes primary required if employee changes primary job.job.

How does the Cell How does the Cell Phone and Internet Phone and Internet Stipend Program Stipend Program

work?work?

STEP 1STEP 1

If management determines that there is a If management determines that there is a business need for an employee to receive a cell business need for an employee to receive a cell

phone or internet stipend, management will phone or internet stipend, management will print and complete a print and complete a

Supervisor Worksheet & Employee Supervisor Worksheet & Employee AgreementAgreement

and obtain signatures from the following:and obtain signatures from the following:

● ● Dean, AVP or DirectorDean, AVP or Director

● ● Vice President (cell phones only)Vice President (cell phones only)

STEP 2STEP 2

Supervisor completes a Supervisor completes a PAR FormPAR Form for the employee for the stipend for the employee for the stipend

amount. amount.

Once the stipend begins, employee Once the stipend begins, employee will see ½ of their stipend amount will see ½ of their stipend amount

on each on each

semi-monthly paycheck.semi-monthly paycheck.

Filling out Filling out thethe

PAR FORM PAR FORM

Section ISection I

Employee name and E-IDEmployee name and E-ID

Section IISection II Will contain start date (beginning of pay cycle)Will contain start date (beginning of pay cycle) Start date of 25Start date of 25thth of the month – will generate of the month – will generate

payment for the middle of the next monthpayment for the middle of the next month Start date of 10Start date of 10thth of the month – will generate of the month – will generate

payment for the end of the current month.payment for the end of the current month. Account Code – 114540 – University StipendsAccount Code – 114540 – University Stipends No retroactive stipendsNo retroactive stipends No end date necessary.No end date necessary. Submit to HR by PAR form deadlines on Payroll Submit to HR by PAR form deadlines on Payroll

CalendarCalendar

Section IIISection III

Mark the Action/Reason section – Mark the Action/Reason section – “Additional Pay”“Additional Pay”

Record notes as “Cell Phone/ Record notes as “Cell Phone/ Internet Connection Stipend”Internet Connection Stipend”

Stipend level may be recorded in the Stipend level may be recorded in the notes if you wish.notes if you wish.

Section IVSection IV

Compensation – Enter “Additional Pay – Compensation – Enter “Additional Pay – Other”Other”

Conditions of Employment – “Continuous Conditions of Employment – “Continuous Monthly Amount”Monthly Amount”

Amount – Place Semi-Monthly AmountAmount – Place Semi-Monthly Amount

*** Amount will be ½ of the total *** Amount will be ½ of the total amount that the employee is to amount that the employee is to receive.receive.

STEP 3STEP 3 Supervisor meets with employee.Supervisor meets with employee. Supervisor reviews stipend and dollar Supervisor reviews stipend and dollar

amount with employee and employee signs amount with employee and employee signs Supervisor Worksheet and Employee Supervisor Worksheet and Employee Agreement.Agreement.

By agreeing to the stipend, employees will By agreeing to the stipend, employees will agree that their wireless number may be agree that their wireless number may be distributed for business use.distributed for business use.

Supervisor directs employee to contact Supervisor directs employee to contact JMU Telecommunications at (540) 568-JMU Telecommunications at (540) 568-6471 for additional details regarding JMU 6471 for additional details regarding JMU discounts on wireless equipment and discounts on wireless equipment and service.service.

STEP 4STEP 4

Supervisor submits a completed Supervisor submits a completed PAR FormPAR Form

and and Supervisor Worksheet and Employee Supervisor Worksheet and Employee

AgreementAgreement to Human Resources to Human Resources (MSC 7009).(MSC 7009).

STEP 5STEP 5

Budget RevisionBudget Revision Departments will need to complete a JMU Departments will need to complete a JMU

Budget Revision Form to move the necessary Budget Revision Form to move the necessary dollars from the non-personal budget amount dollars from the non-personal budget amount to the personal services budget.to the personal services budget.

Funds will need to be moved from the non-Funds will need to be moved from the non-personal expenditure code of 121800 personal expenditure code of 121800 (Telecommunications Services) to personal (Telecommunications Services) to personal services expenditure code of 114540 services expenditure code of 114540 (University Stipends).(University Stipends).

Cell Phone Transition Cell Phone Transition Contacts:Contacts:

For additional information, questions, or comments, For additional information, questions, or comments, please contact JMU Telecommunications. We are here to please contact JMU Telecommunications. We are here to help!help!

Cell Phone InformationCell Phone InformationSusan Dean, JMU Telecom, 568-6471, deansj@jmu.edu Susan Dean, JMU Telecom, 568-6471, deansj@jmu.edu Roya Edelstein, JMU Telecom, 568-6561, Roya Edelstein, JMU Telecom, 568-6561,

edelstrx@jmu.eduedelstrx@jmu.edu

Internet Information:Internet Information:Norma Burkholder, JMU Telecom, 568-3484, Norma Burkholder, JMU Telecom, 568-3484,

burkhonj@jmu.eduburkhonj@jmu.eduKathy Pitts, JMU Telecom, 568-6108, pittskt@jmu.edu Kathy Pitts, JMU Telecom, 568-6108, pittskt@jmu.edu