Submitted on behalf of Robert A. Cree, associate vice president for business and finance.
Ithaca College is implementing a new cell phone policy that was developed to address two primary concerns having to do with College provided cell phones to its employees. First, this policy provides a clear framework and guidance for the appropriate use of College funds as it relates to cell phone use for business purposes. Secondly, it addresses any taxability issues surrounding personal use of College provided cell phones.
Currently the IRS considers cellular phones to be “listed property”. As such, the IRS requires detailed record keeping, requiring business purpose substantiation of every call made on a cellular phone. All undocumented calls would be considered personal use and must be taxed as wages. In order to avoid this onerous record keeping requirement, the College will no longer pay directly for employees’ cell phone plans. Instead, this policy allows for a taxable allowance paid directly to the employee through payroll which is to be used toward the expense of their personal cell phone plan. A copy of this policy can be found on the College’s Financial Services website at https://www.ithaca.edu/financial_services/policies/CellPhonePolicy/.
Effective immediately, the College will no longer establish new corporate liable cell phone accounts for its employees. Instead employees who, by the nature of their work, are required to be accessible by telephone regardless of the time of day, day of the week, or geographical location and have been approved to receive a monthly cell phone allowance must establish a cell phone account with the carrier of their choice in their own name.
For those employees that currently have a College provided cell phone you have until May 31, 2010 to establish service under your own name and submit an approved “Cell Phone Allowance Request Form” to the Payroll Office. (Note that cell phone allowances may take up to the first of the following month from Payroll’s receipt of an approved allowance request form.) Please see the “How to Transfer Existing Cell Phone Service” document for further instructions specific to either Verizon Wireless or AT&T.
Any cell phone accounts remaining in the College’s name, other than departmental cell phones, as of June 1, 2010 will be shut down.
If you have any questions on this policy or the procedures necessary to transfer existing service, please contact me at 274-3118 or your department supervisor.
https://www.ithaca.edu/intercom/article.php/20091208152541167