Cell Phone and Internet Stipend Program

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

(TRANSITION EMPLOYEES)(TRANSITION EMPLOYEES)

Stipend Program Steering CommitteeStipend Program Steering Committee

Towana Moore Towana Moore Associate VP of Business ServicesAssociate VP of Business Services540 568 2535540 568 2535e-mail: e-mail: [email protected]@jmu.edu

John Knight John Knight AVP, FinanceAVP, Finance540 568 6433540 568 6433e-mail: e-mail: [email protected]@jmu.edu

Dale Hulvey Dale Hulvey AVP, Information TechnologyAVP, Information Technology540 568 706540 568 706e-mail: e-mail: [email protected]@jmu.edu

Jill Eckard Jill Eckard Director, Payroll ServicesDirector, Payroll Services540 568 3402540 568 3402e-mail: e-mail: [email protected]@jmu.edu

Michael WoolmanMichael WoolmanDirector, TelecommunicationsDirector, Telecommunications540 568 3119540 568 3119e-mail: e-mail: [email protected]@jmu.edu

Norma BurkholderNorma BurkholderTelecommunicationsTelecommunications540 568 3484540 568 3484e-mail: e-mail: [email protected]@jmu.edu

Roya EdelsteinRoya EdelsteinTelecommunicationsTelecommunications540 568 6561540 568 6561e-mail: e-mail: [email protected]@jmu.edu

Kathy PittsKathy PittsTelecommunicationsTelecommunications540 568 6108540 568 6108e-mail: e-mail: [email protected]@jmu.edu

Susan DeanSusan DeanTelecommunicationsTelecommunications540 568 6471540 568 6471e-mail: e-mail: [email protected]@jmu.edu

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

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

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

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

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

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

Reasons for Stipend ProgramReasons for Stipend Program

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

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

Reasons for New PolicyReasons for New Policy

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

by the IRS.by the IRS.

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

IRS Substantiation RequirementsIRS Substantiation Requirements

Under the current IRS regulations, the following Under the current IRS regulations, the following information must be maintained for information must be maintained for each and each and every call: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 with all Explanation of business relationship with all

participating parties on each callparticipating parties on each call

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

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

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

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

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

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

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

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

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

Stipend ProgramStipend ProgramThe stipend program is designed to pay The stipend program is designed to pay

the business use portionthe business use portion

of your bill, given that wireless phones and of your bill, given that wireless phones and internet services are currently being used for internet services are currently being used for

both business and personal use.both business and personal use.

Advantages to Stipend Program:Advantages to Stipend Program:

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

business callsbusiness calls No need to carry two cell phonesNo need to carry two cell phones Employees may choose any vendor (no longer Employees may choose any vendor (no longer

required to stay on state contract)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 ServicesStipends are paid through Payroll Services

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 Required)(VP Approval 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 employee. Stipend will be considered taxable income to the employee. • Tax considerations have been taken into account when Tax considerations have been taken into account when

determining stipend levels.determining stipend levels.

EquipmentEquipment

Employees who currently have university cell phones may use Employees who currently have university cell phones may use their existing equipment, however, their existing equipment, however, equipment must be equipment must be returned upon leaving the university.returned upon leaving the university.

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

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

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

ServiceService

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

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

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

Departmental Provided Cell PhonesDepartmental Provided Cell Phones

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

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

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

How will stipends be determined?How will stipends be determined? Approval for a cell phone stipend will be granted in writing by the Senior Approval for a cell phone stipend will be granted in writing by the Senior

Vice President.Vice President. Departments should use this opportunity to evaluate current use and level of Departments should use this opportunity to evaluate current use and level of

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

amount will be based on business need.amount will be based on business need. Cell phone and internet stipends will be based on one or more of the Cell phone and internet stipends will be based on one or more of the

following criteria: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 Internet of - Job function requires home or off-campus access to the Internet of university data services.university data services.- Other (please provide justification)- Other (please provide justification)

Termination of a StipendTermination of a Stipend

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

the stipend.the stipend. Because a stipend is based on primary job, VP Because a stipend is based on primary job, VP

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

JMU Billing InformationJMU Billing Information

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

departments will continue to receive departments will continue to receive billing for two to three months after billing for two to three months after

transitions take place.transitions take place.

Some information about porting . . .Some information about porting . . . The term “porting” a wireless number means to The term “porting” a wireless number means to keepkeep your existing wireless number and your existing wireless number and movemove it it

to another vendor.to another vendor.

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

The employee may disconnect their business number and keep their existing personal number.The employee may disconnect their business number and keep their existing 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 be distributed for By agreeing to the stipend, employees will agree that their wireless number may be distributed for business use.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 with Telecom.If possible, please bring a copy of your personal cell phone bill when you meet with Telecom.

Vendors may ask for the following information from employees to coordinate porting:Vendors may ask for the following information from employees to coordinate 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 Management.Stipends will be determined by Management.

AA Supervisor Worksheet & Employee AgreementSupervisor Worksheet & Employee Agreement

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

receiving a stipend.receiving a stipend.

SignaturesSignatures

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

Employee Agreement:Employee Agreement:

● ● Dean, AVP or DirectorDean, AVP or Director

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

STEP 3STEP 3

During the transition period, management will During the transition period, management will distribute a copy of the distribute a copy of 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 the Supervisor will fill out the

PAR Form.PAR Form.

Filling out theFilling out the

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 payment of the month – will generate payment

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

for the end of the current month.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 – “Additional Mark the Action/Reason section – “Additional Pay”Pay”

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

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

Section IVSection IV

Compensation – Enter “Additional Pay – Other”Compensation – Enter “Additional Pay – Other” Conditions of Employment – “Continuous Monthly Conditions of Employment – “Continuous Monthly

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

*** Amount will be ½ of the total amount that the *** Amount will be ½ of the total amount that the employee is to receive.employee is to 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 to review Supervisor meets with employee to review stipend and dollar amount and stipend and dollar amount and

employee signs agreement.employee signs agreement.

2.2. Supervisor directs the employee to Supervisor directs the employee to contact contact JMU TelecommunicationsJMU Telecommunications

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

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

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

Telecom staff will provide information regarding:Telecom staff will provide information 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 AgreementSupervisor Worksheet and Employee Agreement

to the to the

PAR FormPAR Form

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

STEP 8STEP 8

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

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

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

Cell Phone Transition Contacts:Cell Phone Transition Contacts:For additional information, questions, or comments, please contact For additional information, questions, or comments, please contact

JMU Telecommunications. We are here to help!JMU Telecommunications. We are here to help!

Cell Phone InformationCell Phone InformationSusan Dean, JMU Telecom, 568-6471, Susan Dean, JMU Telecom, 568-6471, [email protected]@jmu.edu Roya Edelstein, JMU Telecom, 568-6561, Roya Edelstein, JMU Telecom, 568-6561, [email protected]@jmu.edu

Internet Information:Internet Information:Norma Burkholder, JMU Telecom, 568-3484, Norma Burkholder, JMU Telecom, 568-3484, [email protected]@jmu.eduKathy Pitts, JMU Telecom, 568-6108, Kathy Pitts, JMU Telecom, 568-6108, [email protected]@jmu.edu