University Cell Phone Policy

The University is implementing a policy of cell phone allowances and eliminating the current practice of cell phone invoice payments or reimbursements. This 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 amount of monthly allowance will vary from $30 to $90, depending on need and department resources. Once employees have qualified, their allowance amounts will be direct-deposited to their bank accounts monthly. Employees will receive their monthly cell phone bills at their home addresses, and be personally responsible for the payments.

Cell phones are a taxable employee benefit, and payroll tax will be withheld on cell phone allowances. Employees may claim exemptions for cell phone business use when they file their personal income tax. Employees may also analyze their monthly bills to determine the proportion of business use, and request an exemption of that portion from payroll withholding.

Purchasing will help you with the conversion to this new system. Simply submit an approved Allowance Request Form along with a copy of your most recent cell phone invoice.