Cell Phone and Internet Stipend Program Cell Phone and Internet Stipend Program For SupervisorsFor Supervisors

(TRANSITION EMPLOYEES)(TRANSITION EMPLOYEES)

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: e-mail: hulveydb@jmu.eduhulveydb@jmu.edu

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

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

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

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

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

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

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

Because of business need, some employees Because of business need, some employees currently have wireless phone service and/or currently have wireless phone service and/or internet through the university. The service is internet through the university. The service is currently being paid for by their department.currently being paid for by their department.

Starting with the Division of Administration & Starting with the Division of Administration & Finance, employees will now transition from Finance, employees will now transition from university accounts to personal accounts and university accounts to personal accounts and the new Stipend Program.the new Stipend Program.

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 currently Several universities nationwide are currently

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

- - Many universities across the nation have Many universities across the nation have already implemented or are in the process of already implemented or are in the process of adopting similar stipend programs.adopting similar stipend 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 personal No need to distinguish between personal

and business callsand 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 contract)longer required to stay on state contract) Employees may move (port) their business Employees may move (port) their business

phone numbers to their personal accountsphone numbers to their personal accounts 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 who currently have university cell Employees who currently have university cell

phones may use their existing equipment, however, phones may use their existing equipment, however, equipment must be returned upon leaving the equipment must be returned upon leaving the university.university.

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

If employee moves to a new vendor when If employee moves to a new vendor when transitioning from their university account to their transitioning from their university account to their personal account, new equipment will need to be personal account, new equipment will need to be purchased. University equipment will need to be purchased. University equipment will need to be returned to Telecommunications.returned to Telecommunications.

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

ServiceService When transitioning from a university When transitioning from a university

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

When transitioning from a university When transitioning from a university account to a personal account, a new account to a personal account, a new contract will be required from the contract will be required from the vendor.vendor.

Vendors will require credit checks.Vendors will require credit checks.

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.

JMU Billing InformationJMU Billing Information

Due to lag time in monthly Due to lag time in monthly billing and call detail from billing and call detail from vendors, JMU departments vendors, JMU departments

will continue to receive will continue to receive billing for two to three billing for two to three

months after transitions take months after transitions take place.place.

Some information about Some information about porting . . .porting . . .

The term “porting” a wireless number means to The term “porting” a wireless number means to keepkeep your existing wireless your existing wireless number and number and movemove it to another vendor. it to another vendor.

The employee may port (move) their existing business number to their personal The employee may port (move) their existing business number to their personal account.account.

-OR--OR- The employee may disconnect their business number and keep their existing The employee may disconnect their business number and keep their existing

personal number.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 By agreeing to the stipend, employees will agree that their wireless number may

be distributed for business use.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 If possible, please bring a copy of your personal cell phone bill when you meet

with Telecom.with Telecom. Vendors may ask for the following information from employees to coordinate Vendors may ask for the following information from employees to coordinate

porting:porting:- Name on personal account- Name on personal account- Account number- Account number- Social Security Number- Social Security Number- Driver’s license number and expiration date- Driver’s license number and expiration date- Telephone number- Telephone number- Home billing address- Home billing address

How will the cell phone How will the cell phone and internet transition and internet transition

process work?process work?

STEP 1STEP 1

Stipend Program will be Stipend Program will be

presented to Supervisors.presented to Supervisors.

STEP 2STEP 2

Stipends will be determined by Stipends will be determined by Management.Management.

AA Supervisor Worksheet & Employee Supervisor Worksheet & Employee AgreementAgreement

will be completed for each employee will be completed for each employee

receiving a stipend.receiving a stipend.

SignaturesSignatures

The following signatures will be The following signatures will be required on the required on the Supervisor Supervisor Worksheet and Employee Worksheet and Employee

Agreement:Agreement:

● ● Dean, AVP or DirectorDean, AVP or Director

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

STEP 3STEP 3

During the transition period, During the transition period, management will distribute a copy of management will distribute a copy of

the the

Supervisor Worksheet and Supervisor Worksheet and

Employee AgreementEmployee Agreement

to the following:to the following:

1. Supervisor1. Supervisor

2. Telecommunications2. Telecommunications

STEP 4STEP 4

Supervisor will fill out Supervisor will fill out the the

PAR Form.PAR Form.

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 5STEP 5

Stipend Program will beStipend Program will be

presented to Employees.presented to Employees.

STEP 6STEP 6

1.1. Supervisor meets with employee Supervisor meets with employee to review to review stipend and dollar stipend and dollar amount and amount and employee signs employee signs agreement.agreement.

2.2. Supervisor directs the employee Supervisor directs the employee to to contact contact JMU JMU TelecommunicationsTelecommunications

to move their business account to move their business account to a to a personal account.personal account.

Help during the Help during the transition . . .transition . . .

Telecom staff will help each employee Telecom staff will help each employee through the process of transitioning from through the process of transitioning from their JMU account to a personal account. their JMU account to a personal account.

Telecom staff will provide information Telecom staff will provide information regarding:regarding:

Vendor discountsVendor discounts EquipmentEquipment Service plansService plans Porting numbers Porting numbers BillingBilling

STEP 7STEP 7

Submit FormsSubmit FormsPlease attach a copy of the Please attach a copy of the

Supervisor Worksheet and Employee Supervisor Worksheet and Employee AgreementAgreement

to the to the

PAR FormPAR Form

and submit to Human Resources (MSC and submit to Human Resources (MSC 7009).7009).

STEP 8STEP 8

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, Susan Dean, JMU Telecom, 568-6471, deansj@jmu.edudeansj@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, Kathy Pitts, JMU Telecom, 568-6108, pittskt@jmu.edupittskt@jmu.edu