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Cell Phone Allowance Request(pdf)
Letterhead and Envelopes Order
Purchasing Card Application(.doc)
Lost/Stolen Purchasing Card Notification(.doc)
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FAQs - Cell Phones Policy and ProceduresThe frequently asked questions below are based on the University Cell Phone Policies and Procedures effective January 1st, 2007. They are for staff and faculty use only.
Why does the university want me to own my cellular telephone? 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. It will also enable us to comply with IRS rules regarding the taxability of employee cell phones. 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 I have used a University owned cell phone for a long time with no problems. Why the change? 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. This seems ridiculous. Why are you putting us through this? While this may seem silly to us, the IRS takes it seriously. The IRS has already made cellular telephone use an audit issue for businesses and government institutions, including higher education. The University provides me a cell phone with a plan that includes 400 minutes. I never exceed 400 minutes, including personal calls. Aren't I OK? No. IRS authority says that personal calls that are included in the base plan must be documented and reimbursed, or reported as wages. Is there a way to avoid withholding on my allowance? Yes, but it is a cumbersome and time consuming process. You have to analyze two of your invoices annually, and complete a detailed analysis of your business and personal calls. See details at Cell Phone Allowance Withholding Exemption. How do I know I'm getting a fair allowance? With department approval, you will work with your budget officer to determine how much your allowance will be. You will receive an amount necessary to pay for required business use. What if my actual business usage exceeds the amount of the allowance that I receive? 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. Does everyone get an allowance for a personally-owned cell phone? 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. Do I get retirement contributions or other benefits if I receive a taxable allowance for my cell phone? No. The allowance is not part of your salary; it is a taxable reimbursement not included when determining benefits. How do I know what cellular telephone or monthly plan to choose? The device and plan you select will be based on several factors. You should consider both business and personal service coverage. Your job may not require a camera phone, but you may find a camera phone to be a good option for you personally. You should consider your calling patterns. Is unlimited long distance necessary? Would text messaging be a plus? What are the chances that you may exceed your base plan minutes and be required to pay expensive overage minutes? We recommend that you shop around and speak with the different vendor reps before making a decision. Which monthly plans have the best price? You should speak with the vendor representatives and check their websites. Price should only be one factor in your choice. The lowest price carrier may not meet your coverage and other needs. Be sure to identify yourself as a member of the DU community and ask for the DU employee discount. This could be as high as 18%. What if my choice doesn't work out for me? You should take full advantage of any trial periods offered by the vendors. Pay strict attention to your level of service during that period and return the phone and cancel the plan if you are not receiving the level of service you need. Even if I don't receive an allowance, as a University faculty or staff member am I eligible for the individual discounts the cellular vendors offer? 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 liability pricing. If I am a supervisor, how do I select the correct allowance amount for an employee? The allowance amount must be based on the business requirements of the employee's position. Amounts may be selected from $30 to $90, 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 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. 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. What happens after I send my Allowance form into the Purchasing Department? Purchasing reviews the request and establishes your monthly allowance payment. When and how should I expect to see my allowance? You will see your allowance five days before your cell phone invoice it due as a Direct Deposit. You will receive an email that a deposit has been made to your account. What is the appropriate account number to use for the allowance program? A unique account has been established for cell phone allowances. It is 722400 How can I change the amount of an allowance, or the FOAP it is charged to? Submit an Allowance Change Request Form If I have questions on the allowance once I receive it who should I talk to? First talk to your Budget Officer. You or s/he may need to contact Purchasing Services. Can I switch providers and keep my current phone number? How do I do that? Yes, you can. First, determine which company you want to go with. Then, contact a company representative and get the details If I switch to another provider, can I keep my current device? No. Each time you switch from one provider to another you must obtain a device from the new provider.
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2467 S. Vine St. Denver, Colorado 80208 |
