The University of Memphis

Cellular Phones

POLICIES

Employees whose job duties include the frequent need for a cell phone may receive extra compensation, in the form of a cell phone allowance, to cover the business-related costs of maintaining a cell-phone. All other employees may submit infrequent business-related cell phone expenses for individual reimbursement. The University of Memphis will not own cell phones for the use of individual employees.

Cell phones should not be selected as an alternative to other means of communication -- e.g., land-lines and radio phones -- when such alternatives would provide adequate but less costly service to the University.

This policy allows each user the freedom of choice and personal responsibility for his or her cell phone plan. This policy is also in compliance with IRS rules regarding the taxability of employee cell phones.

• Eligibility
• Documentation and Review Requirements
• Establishment and Payment of Allowance
• Determination of Dollar Amount of Allowance
• Employee's Responsibilities
• Fees for Contract Changes or Cancellations
• Infrequent Use of Cell Phones for Business Purposes

• Cell Phone Allowance Request/Change Form

• Why does the University want me to own my cellular telephone?
• Why do I need a personal cell phone plan when I never exceed my current minutes on my University-provided cell phone?
• What if my actual business usage exceeds the amount of the allowance that I receive?
• How do I know what cellular telephone or monthly plan to choose?
• What if my choice doesn't work out for me?
• What about smart phones or PDA/Phone combinations?
• If I am authorized to use a smart phone to access University e-mail, calendering or other services, can the University recommend which devices will work best and will be supported by the University?
• If I am not eligible to receive an allowance as a University faculty or staff member, am I eligible for the individual discounts the cellular vendors offer?
• Can I switch providers and keep my current phone number? How do I do that?
• Can I keep the same phone and plan that the university originally provided?
• What do I need to do to cancel the existing University plan and what should I do with the equipment I currently have?
• How are cell phone allowances determined?
• Does everyone get an allowance for a personally-owned cell phone?
• If I am a supervisor, how do I select the correct allowance amount for an employee?
• When and how should I expect to see my allowance?
• Which bi-weekly check will include the allowance?
• Do I get retirement contributions or other benefits if I receive a taxable allowance for my cell phone?
• What happens when an employee receiving a Cell Phone Allowance goes on Leave Without Pay?
• How can I change the amount of an allowance, or the FOAP it is charged to?
• If I have questions on the allowance once I receive it, who should I talk to?
• How can I access my calendar and email folders on my BlackBerry?

• Cell Phone Service Plans

1. A regular employee whose supervisor has determined that there is a business necessity for the frequent use of a cell phone is eligible to receive a cell phone allowance.
2. There will be no retroactive cell phone allowances paid.
3. Students who are not regular employees are not eligible for a cell phone allowance.

1. Responsible officials must annually review employees business-related cell-phone use to determine if existing cell phone allowances should be continued as-is, changed, or discontinued.
2. The Cell Phone Allowance Request/Change Form should be used to notify Human Resources immediately when employees with allowances leave the University (See Employee Separation and Clearance Form).
3. Employees who receive a cell phone allowance are required to provide cellular phone records to the University of Memphis upon request.

1. If a University employee's job duties include the frequent need for a cell phone, then the employee is eligible for an allowance to cover business-related cell phone expenses. It may be requested using the Cell Phone Allowance Request Form. The request may be made any time during the fiscal year, with the appropriate Department Head's approval. 
2. The request form must be submitted to Human Resources for the allowance to be direct deposited into the employee's account. Payments will begin as soon as possible, taking into account payroll processing deadlines.
3. This allowance does not constitute an increase to base pay, and will not be included in the calculation of percentage increases to base pay due to annual raises, job upgrades, etc.

1. The dollar amount of the cell phone allowance should cover the employee's projected business-related expenses. The allowance amount chosen should be the least expensive that provides adequate business-related services.
2. The expenses to be provided under this policy include the cost of basic equipment and a monthly cell phone plan that provides adequate business related services. 
3. Upgrades to basic equipment (special cosmetic or technical features, etc.) beyond what is necessary for business reasons or expected cell phone use unrelated to business cannot be considered in determining allowance amounts.
4. Determination of the dollar amount of the allowance is made at the department level, but must be within the guidelines and dollar limits established under this policy.
5. The dollar amount of the monthly cell phone allowance should approximate the employees anticipated business related expenses only.  Management should use the following ranges to determine the appropriate allowance: 

   Tier 1 – Up to $45/month: This allowance is for the employee who requires basic usage of the cell phone for business purposes (450 minutes or less).

   Tier 2 – Up to $75/month: This allowance is for the employee who requires heavy usage of the cell phone for business purposes (450 to 900 minutes).

   Tier 3 – Up to $115/month: This allowance is for the employee who requires extremely heavy usage of the cell phone for business purposes (900 minutes or more).

6. Allowance Add-ons – Up to $50/month:  This is an additional allowance for employees who have extra phone services such as text messaging, wireless cards for laptops, email and data plans necessary for their job.  This amount may be adjusted by the employee’s supervisor with appropriate justification.
7. For bi-weekly paid employees, the monthly allowance will be annualized and evenly applied to each payroll check according to the bi-weekly payroll schedule.
8. A Non-Recurring Equipment Allowance may be requested for the purchase of a basic cell phone, PDA or wireless card for laptops.  The following caps/limits are set, depending on monthly service plan requirements:  

   Basic cell phone	Up to $150
   Unit with Data capabilities	Up to $400
   PC Card	Up to $50

9. Approved one-time equipment allowances will be paid in full to both bi-weekly and monthly paid employees on the subsequent payroll date according to the Human Resources payroll schedule.

1. The employee must retain an active cell phone contract as long as a cell phone allowance is in place. Because the cell phone is owned personally by the employee, and the allowance provided is taxable income, the employee may use the phone for both business and personal purposes, as needed.
2. The employee must notify his or her own department and Network Services each time the cell phone number is changed.
3. The employee may, at his or her own expense, add extra services or equipment features, as desired.
4. Use of the phone in any manner contrary to local, state, or federal laws will constitute misuse, and will result in immediate termination of the cell phone allowance, as well as possible other discipline, up to and including termination.

1. If, prior to the end of the cell phone contract, a personal decision by the employee to change or end the cell phone contract, or a decision by the department because of employee misconduct or misuse of the phone results in the need to end or change the cell phone allowance, the employee will bear the cost of any fees associated with that change or cancellation.
2. If, prior to the end of the cell phone contract period, a departmental decision (unrelated to employee misconduct) results in the need to end or change the cell phone allowance, the department will bear the cost of any fees associated with that change or cancellation. For example, if the employee's supervisor has changed the employee's duties and the cell phone is no longer needed for business purposes the University will bear the costs of any cancellation fees, if the employee does not want to retain the current contract.

1. If a University employee's job duties do not include the need for a cell phone, the employee is not eligible for an allowance.
2. Such employees may request reimbursement for the actual extra expenses of business cell phone calls. Reimbursement for per-minute "air time" charges is limited to the total overage charge shown on the invoice, i.e., expenses for minutes included in the plan will not be reimbursed.
3. The individual should make personal payment to the provider, and then submit a request for reimbursement to the Accounting Office.   The reimbursement amount will be for documented business expenses only, and the reimbursement will not be added to the employee's taxable wages.

http://bf.memphis.edu/hr/forms/Cell_Allowance_Request_Change_Form.pdf

It will greatly simplify the entire cell phone program, and result in each user having both freedom of choice and personal responsibility for his or her cell phone plan. The IRS considers cell phones to be listed property. As such, it requires detailed record keeping (IRS Section 274(d) (4), including (a) the amount of the expense, (b) the time and place of call, and (c) the business purpose for the call.  Internal Revenue Service authority considers cell phone use a taxable fringe benefit if the business and personal use cannot be substantiated. Only recently has this emerged as a problem in IRS and other audits. The IRS has already made cellular telephone use an audit issue for businesses and government institutions, including higher education.

IRS authority requires that personal calls that are included in the base plan be documented and reimbursed by the employee, or reported as wages.

The monthly allowance amount can be adjusted based on actual business usage or, if your business use spikes one month, you may request an expense reimbursement for un-reimbursed business calls.

The device and plan you select should be based on personal preferences for personal service coverage and the services required by your position (as approved by your supervisor), as well as preferable contract terms.  Refer to Network Services’ Web Site for vendor information.  Although you may select a cell phone plan to address both business and personal needs, the amount of an employee’s allowance will be based on business needs only.

You should take full advantage of any trial periods offered by the vendors.  Of course you will be responsible for any contract terms you personally agree to.  Pay strict attention to your level of service during trial periods and return the phone and cancel the plan if you are not receiving the level of service you need. 

If your job requires that you have access to email, calendaring or other PDA functions, your supervisor may approve an appropriate one-time equipment allowance for this purpose as required to perform your job. If you want a smart phone, but your job doesn’t require it, you would pay the difference in the allowance amount and the actual cost of a smart phone or other more expensive device.

Remember that these products change regularly – so you should speak with the vendor representatives.  Contact Network Services for recommended equipment.

Yes! If you are a current University faculty or staff member, you are invited to take advantage of any of the discounts offered by the cellular vendors under their individual pricing plans.  Contact Network Services for a summary of vendor offerings.

Yes, you can; however, keeping your existing phone number can only be done for active numbers. First, determine which company you want to go with. Then, contact a company representative and get the details. 

Yes, but you will need to complete the appropriate documents required by the vendor.  See Network Services web page: http://itd.memphis.edu/network/cellular-changeover.htm.  

If you are staying with the current vendor, you may keep your existing equipment.   If you are changing vendors and your phone is no longer compatible, you will need to return the equipment you have to your department.  If the department has no business use for the equipment, the equipment should be surplused as University Surplus Property.  All existing plans currently paid by The University will cease automatically June 30, 2008.  See Network Services web page: http://itd.memphis.edu/network/cellular-changeover.htm

With department approval, you will work with your budget officer and/or supervisor to determine how much your allowance will be. You will receive an amount necessary to pay for required business use.

No. You should only receive an allowance if your job requires that you carry a cell phone where other less expensive means of communication are not adequate, and then only an amount necessary to cover business calls. Just because someone with your title gets an allowance doesn’t mean that you will if your specific duties do not require the use of a cellular phone.

The allowance amount must be based on the business requirements of the employee's position. Amounts may be selected up to a maximum of $165, based on the monthly plan cost.

Because the allowance is taxable, the actual amount that an employee receives will be less than the selected allowance amount. Departments are encouraged to determine an amount based on job function that is fair to the employee and the department. This should consider business usage only and not added personal usage. Legitimate business expenses are the cost of basic equipment, and the monthly cost of a plan that meets the department’s business requirements. Upgrades to basic equipment (special cosmetic or technical features, etc.), or expected cell phone use unrelated to business, cannot be considered when determining the allowance amount.

Determination of the dollar amount of the allowance is made at the department level, but must be within the guidelines established under this University policy.

Your allowance will be included in your next regular pay Direct Deposit, as determined by Human Resources’ pay deadline dates, based on the date approved requests are received.  Initially, allowances must be completed and returned to Human Resources by June 30, 2008, for inclusion on the July pay date.  You can check Banner Employee self service for details of your allowance as is the case for all pay and related deduction amounts.

Each bi-weekly check will include a portion of the cell phone allowance.  Payment of the monthly allowance to bi-weekly paid employees is calculated by annualizing  the monthly allowance and evenly applying the amount to each payroll check according to the bi-weekly payroll schedule (monthly allowance times 12 divided by 26 (# of payroll checks in a year). This amount is added to each bi-weekly check.).

No. The allowance is not part of your salary; it is a taxable reimbursement not included when determining benefits.

If an employee goes into Leave Without Pay status, the cell phone allowance will continue.  If the supervisor wants to cancel the Cell Phone Allowance, he or she must contact an Employee Records Assistant or a University Leave Specialist by emailing emprec@memphis.edu to make arrangements to cancel the Cell Allowance.

Submit a Cell Phone Allowance Request/Change Form with appropriate approvals.

First talk to your Business Officer. You or s/he may also contact Network Services or Human Resources.

You must contact Network Services to acquire a University license to the UM BlackBerry Server.  This one-time cost will be charged to your University departmental account.  No additional steps are required for those individuals who have an existing Blackberry license.

Refer to the Information Technology Division's Network Services web page for information about cellular service providers: http://itd.memphis.edu/network/cellular-changeover.htm