University of
ConnecticutFrequently Asked Questions
-
Rationale
- Why is the University changing to a stipend plan?
- I have used a University owned wireless device for a long time with no problems. Why is the change happening now?
- I have been paying for personal calls made on my University-owned wireless device. Aren’t I meeting the IRS requirements?
- I document my personal calls by marking them on my wireless device statement. Isn’t that enough substantiation?
- Why is a wireless device treated differently than the phone on my desk?
- If I decide that I no longer want to take part in the Wireless Stipend and would like cellular service to become Departmental cellular service, can I keep the same mobile number?
Stipend Policy - Why is the allowance I receive for my wireless plan and device taxable?
- How will the stipend payment be listed on the payroll stub?
- What happens if my actual business usage exceeds the amount of the monthly stipend I receive?
- Does everyone get a taxable allowance for a personally-owned wireless device?
- Are there any exceptions to receiving a stipend?
- What happens after I am approved for an allowance?
- What if I leave the University before my wireless device contract expires? Will I be reimbursed for any cancellation fees?
- What if I change jobs, does my stipend continue?
- How will the stipend benefit be managed?
- Will the taxable allowance be included in my income for calculating my retirement or other benefits?
- I’m a supervisor, how do I know which is the correct allowance amount for an employee?
Wireless Plans & Devices - The university authorizes a wireless device stipend (and compensates the employee) annually. Can I select a plan for a longer term?
- Can I use my wireless device for personal calls when I purchase it with a taxable allowance from the University?
- What happens if my wireless device is lost, stolen or damaged?
- Can I purchase additional minutes for personal use if I pay for the minutes myself?
- Can I add a wireless device to an existing family plan if it is cheaper than buying a new phone and getting a new number under the allowance method?
- Can I purchase a Treo or other Personal Digital Assistants (PDA) smart phones instead of a Blackberry?
- Will the University purchase accessories like a Bluetooth, extra batteries, etc.?
- I currently have a University purchased wireless device. Is it possible to port my number to my service provider?
- I currently have a University purchased wireless device and would like to keep it. What do I need to do to transfer the wireless device from the University?
- Do I get to keep my phone, when my personal contract expires?
- Which monthly plans have the best price?
- Am I required to publish my telephone number?
- Why is the University changing to a stipend plan?
The Internal Revenue Service (IRS) requires that the business and personal use of University-owned cell phones must be documented in a very detailed manner. In addition to identifying all personal calls on the employee’s monthly cell phone statement, the employee must note the purpose of each business call. In the absence of such documentation, the IRS can treat all undocumented calls as personal and the value of those calls as wages, even if the calls were business calls. The IRS website provides further clarification on employer provided wireless devices. http://www.irs.gov/govt/fslg/article/0,,id=167154,00.html.
- I have used a University owned wireless device for a long time with no problems. Why is the change happening now?
The IRS considers wireless device use a taxable fringe benefit if the business and personal use cannot be substantiated. This is not new; however, this issue emerged as a problem in IRS audits of some colleges and universities. - I have been paying for personal calls made on my University-owned wireless device. Aren’t I meeting the IRS requirements?
Probably not, unless you have provided your department with detailed documentation of your business use and have paid a pro-rata share of your total wireless device bill for the personal use.Additionally, such arrangement is in conflict with the State of Connecticut ethics rules.
- I document my personal calls by marking them on my wireless device statement. Isn’t that enough substantiation?
Under IRS regulations, it is not enough to simply mark personal calls and say that all the rest are business calls. Under these regulations, the business usage of the phone must be documented by adequate records. At a minimum, the employee must keep a record of each call and its business purpose. If the calls are itemized on a monthly statement, they should be identified as personal or business, and the employee should note the purpose of the business calls. This information should be submitted to the employer, who must maintain these records in order to exclude the value of the phone use from the employee’s income. - Why is a wireless device treated differently than the phone on my desk?
Because a wireless device is portable and may be taken off the University business premises, Congress established the detailed business substantiation rules applicable to this equipment and similar devices. - If I decide that I no longer want to take part in the Wireless Stipend and would like cellular service to become Departmental cellular service, can I keep the same mobile number?
No, you would have to go with new service and a new number. The University does not acquire any mobile numbers that have been used as a personal number even if the number started out as a University mobile number and went to a personal account. Stipend Policy - Why is the allowance I receive for my wireless plan and device taxable?
The allowance amount is taxable income because you will not be required to provide detailed documentation of your business calls or reimburse the University for any personal calls made. You may use your wireless device, paid for by the stipend, for personal calls. Your use, which is a tangible, personal benefit, should, on average, offset the tax burden resulting from the stipend. - How will the stipend payment be listed on the payroll stub?
The payment will be listed as a separate line on the payroll stub. - What happens if my actual business usage exceeds the amount of the monthly stipend I receive?
You may request an adjustment from your supervisor on an as-needed basis. You will need to provide your department with a copy of your wireless device statement noting the calls and the business purpose for each call. - Does everyone get a taxable allowance for a personally-owned wireless device?
No. You may only receive an allowance if your job requires that you carry a wireless device where other less expensive means of communication are not adequate. - Are there any exceptions to receiving a stipend?
Certain employees or groups of employees who are required to use a cell phone while on-duty, and research personnel who use wireless devices as data-collection devices for research purposes may continue to use a University-provided wireless device where it would be impractical for the individuals to receive an allowance or due to security or other operational considerations. In cases where an exception is approved, however, the employee would be required to document the business use of the phone. - What happens after I am approved for an allowance?
The allowance will be added to your pay on the agreed upon date identified in the agreement, subject to payroll deadlines. You will continue to receive the allowance each pay day until the agreement is modified or terminated. - What if I leave the University before my wireless device contract expires? Will I be reimbursed for any cancellation fees?
Yes, if your employment is terminated for any reason and you elect to cancel your wireless agreement, the University will reimburse you for the cancellation fee, so long as you provide proof that you paid the cancellation fee and that you did so within sixty (60) days of the end of your employment by the University. If you elect to keep your wireless contract, you assume all costs. - What if I change jobs, does my stipend continue?
If you change jobs, your new director will be responsible for determining if the job responsibilities require a wireless device and if a stipend should continue. If a wireless device stipend is not approved, the University shall reimburse the employee for paying a termination fee in accordance with paragraph 5 (b) 6 of the Wireless Communication Device and Plan Stipend Policy. - How will the stipend benefit be managed?
It will be managed as all other benefits are managed. Specifically, if employment is terminated, payment for the cell phone plan would end based on the employee termination date. If the employee goes on leave/worker's comp/disability, the payment should be managed as other similar benefits. - Will the taxable allowance be included in my income for calculating my retirement or other benefits?
Yes. The allowance paid to you is additional salary, and it will be included in your compensation for purposes of determining University retirement coverage or other benefits. - I’m a supervisor, how do I know which is the correct allowance amount for an employee?
The allowance amount must be based on the number of plan minutes needed by the employee for business purposes. In selecting the plan, departments should consider business usage only and not added personal usage. Wireless Plans & Devices - The university authorizes a wireless device stipend (and compensates the employee) annually. Can I select a plan for a longer term?
Yes. You may choose to select a longer term contract but will assume any risk should the authorization for the stipend end prior to the completion of the contract. - Can I use my wireless device for personal calls when I purchase it with a taxable allowance from the University?
Yes. Because you own the phone, you do not have to document personal calls. However, the amount of your wireless device allowance will be calculated based on the number of minutes you need for University business use. - What happens if my wireless device is lost, stolen or damaged?
You will be required to replace it at your cost since it is your personal device. Blackberry users must notify Telecommunications at 6-4357 option 2. A remote wipe of the handheld will be done in order to remove all University information. If device is found after remote wipe the device will have to be reactivated. - Can I purchase additional minutes for personal use if I pay for the minutes myself?
Yes. - Can I add a wireless device to an existing family plan if it is cheaper than buying a new phone and getting a new number under the allowance method?
Yes. - Can I purchase a Treo or other Personal Digital Assistants (PDA) smart phones instead of a Blackberry?
You may purchase a PDA/ smart phone. Activation to the University’s email may be done by using the directions for active sync at the following link http://cellular.uconn.edu/pda-smartphones/activesync_instructions.htm. - Will the University purchase accessories like a Bluetooth, extra batteries, etc.?
No. You are responsible for the purchase of any accessories. - I currently have a University purchased wireless device. Is it possible to port my number to my service provider?
Yes. Contact Telecommunications to make the request that the University release your number. - I currently have a University purchased wireless device and would like to keep it. What do I need to do to transfer the wireless device from the University?
Yes, the university Surplus Store can arrange for you to buy your university issued phone/device at a price based on the assessed value or age of the equipment. (Note: Specific details are still being worked out with Central Stores and Purchasing) - Do I get to keep my phone, when my personal contract expires?
Yes.
- Which monthly plans have the best price?
You should speak with the wireless providers and check their websites. Some providers provide discounts to State of Connecticut employees. Price should only be one factor in your choice. The lowest price carrier may not meet your coverage and other needs. You should take full advantage of any trial periods offered by the carrier and pay attention to your level of service during that period. - Am I required to publish my telephone number?
Existing practices will remain in place. You will only be expected to provide your number to authorized University officials.
Receiving a taxable allowance to purchase a personally-owned wireless device and service plan eliminates the requirement for you to track your business and personal calls.
Additionally, due to State of Connecticut ethics rules, many staff members carry a second device for personal use. Under this plan, staff would not need to have two devices.
Created: 1/15/2009