PURPOSE

This policy assumes most employees currently use and maintain personal cell phone plans.  It provides guidance for Carleton supervisors and employees who use cell phones and personal data assistants to conduct business on behalf of the College in excess of the plan they maintain for their personal use.  This policy was created to establish consistent guidelines for employees throughout the institution; ensure compliance with IRS regulation and stabilize spending within available budgets. 

The IRS considers cellular devices to be “listed property”.  Listed property requires detailed record keeping including: the amount of the expense, the time and place of the call and the business purpose for the call. Personal use and undocumented use must be taxed as wages. 

Providing a taxable allowance for an individually owned cellular device removes this detailed documentation requirement.  A taxable monthly allowance simplifies the cellular program; providing both the employee and employer with an efficient and effective technology resource.

POLICY

Carleton College will provide a “cellular allowance” for employees whose job duties include the frequent need for a cellular access device.   The allowance will be added to payroll and applicable taxes will be deducted.  The employee will be responsible for selecting and paying for the cellular service they desire.  This will allow employees to choose a plan that fits both their professional and personal lives, if desired.  If you choose an all-in-one device, please consult Carleton Information Technology Services for recommended equipment.  Employees will not be required to itemize their professional versus personal calls or turn in monthly documentation.  Employees should retain proof of purchase and detailed monthly service plan records to document their eligibility for participation in the program.

Cellular allowances will not be approved when alternative means of communication –e.g., land-lines, pagers, and radio phones – provide an adequate and less costly service option. 

PROCEDURE

I.  Frequent Use of Cellular Devices for Business Purposes

1. Establishment and Payment of Allowance.

If a direct supervisor determines it is necessary and appropriate for an employee to receive a cellular allowance, the supervisor may submit the Cellular Allowance Request Form to the Purchasing Department for processing. 

This allowance does not constitute an increase to base pay, and will not be included in the calculation of percentage increase to base pay due to annual raises, job upgrades, etc.

2. Determination of Eligibility

The guiding principle for eligibility is that the use of a cell phone or cellular PDA by an employee is for the primary benefit of the College.

In making a monthly allowance determination, College employees are eligible if they meet all of the following criteria:

1)      The employee must be readily accessible for frequent contact with the public or with College faculty, staff or students; and

2)      The employee spends a minimum of 6 weeks traveling and must have regular access to telephone and/or Internet service while off-campus; and

3)      Monthly usage for business purposes is consistently 50% or more of total contract minutes; travelers can include one personal call to home as a part of this calculation.

or 

4)      The employee is required to provide extended hour support for critical services at the college or is responsible for operational or decision making for critical services at the college both during the work day and beyond normal work hours.  Alternatively, the employee is required to be mobile across campus and off campus for a significant portion of their work hours.  The extended hour support for critical services eligibility criteria does not ordinarily apply to faculty/student communications, even though these communications may occur outside of regular business hours.

3. Determination of Dollar Amount of Allowance (Revised 7/1/08)

 

The “monthly cellular allowance” is set up to accommodate various levels of business use.  Allowances have been revised based on volume of participants:

MONTHLY EST. BUSINESS MINUTES	MONTHLY ALLOWANCE	ANNUAL COST TO DEPARTMENT PER EMPLOYEE	ONE-TIME  EQUIPMENT *
0-150 Cell only	$20	$240	$0
151-300 Cell only	$45	$540	$0
301+ Cell only	$65	$780	$0
0 – 150 Voice Only Plan w/PDA	$20	$240	$300
151 – 300 Voice Only Plan w/PDA	$45	$540	$300
301+ Voice Only Plan w/ PDA	$65	$780	$300
Personal Digital Assistant  (PDA) Voice and Data	$90	$1080	$300
Device Only	$0	$0	$300
Add ons:  International Access, GPS	$10 (MAX)	$120	$0

* The One-time equipment purchase is based on a 3 year period of time and is provided at the time of new contract (documentation required).  Most cellular carriers offer numerous contracts with free or low cost phones.  Lost, stolen or broken equipment is the responsibility of the employee.  If an individual chooses to purchase insurance, it is at their own expense.

The supervisor must have the Cellular Allowance Request Form approved by the budget manager responsible for the expense and submit the form to the Purchasing Department for processing.

Supervisors are responsible for an annual review of employee business-related cell-phone use, to determine if existing cellular device allowances should continue, change, or discontinue.  Please contact the Purchasing Department if there are any changes to the allowance.  A cell phone allowance may not transfer to a new position and must be evaluated by the new supervisor and budget manager.

The cellular device contract will be in the name of the employee responsible for all payments to the service provider.  Only one cell phone allowance will be provided per employee.  The college reserves the right to remove a participant from this plan if there is insufficient budget in the designated fund to meet the cost of monthly allowances.

Carleton will pay only the agreed upon cellular device allowance even if monthly costs exceed the allowance.  Changes to the allowance may be made during the annual review process by submitting a new approval/change form.

The employee is responsible for the purchase of the cell phone equipment to be used for basic cell service (most basic cell service plans provide free phones).  Costs for cosmetic or technical extras that have no business purpose are the responsibility of the employee.  Insurance, if purchased, is the responsibility of the employee.

II.        SPECIAL SITUATIONS

DEPARTMENTALLY OWNED CONTRACTS

Certain departments may have special needs that justify departmental ownership of cell phones. Club sport programs, resident advisors, maintenance personnel, custodians, and security are examples, of areas where phones may be assigned or rotated among employees. This would also include departments that have multiple employees sharing a single cellular phone for on-call rotations. Employees should not use departmental cell phones for personal calls.

PAGERS

Some departments currently use pagers for their communication needs. Since the cost of pagers is very nominal ($10.00 per month) and potential personal use unlikely, it is recommended that departments pay for pagers directly.

DEVICE ONLY OPTION

In situations where access to a device is a critical professional requirement, the College will provide a device only allowance.  There is no other support for ongoing expenses related to using and maintaining the devices.  There will be a three year replacement cycle for the devices subject to budget constraints.

INTERNATIONAL EXPENSES

This policy allows for reimbursement of incremental expenses incurred when international travel is involved for official business calls and data transfer.

III. DIRECT PAYMENTS BY THE COLLEGE TO A VENDOR FOR CELLULAR SERVICE

The College will not provide direct payments to a vendor for the purchase of equipment or monthly cellular devices for an individual employee.  Additionally, the College will not enter into contracts with vendors for employee use of cellular devices service.  The employee will be the direct holder of a contract with the cellular company.

The Carleton College purchase cards will no longer be allowed for monthly cellular devices service fees or for related equipment purchases.  Existing College contracts for employee-used cellular service should be transitioned from Carleton to the employee and begins the taxable monthly allowance as soon as possible. The Purchasing Manager will assist individuals in this transition.  

IV. USE OF PHONE

Carleton does not accept any liability for claims, charges or disputes between the service provider and individual employee.  Recipients of a cellular device allowance must notify Carleton of the cellular phone number and must continue to maintain the cellular device while in receipt of the allowance.

Use of the cellular device in any manner contrary to local, state, or federal laws will constitute misuse, and will result in immediate termination of the cell phone allowance.

Any use of a cell phone or other personal electronic device is prohibited while driving or using other equipment or machinery such as forklifts, gators, golf carts, etc. Please let someone else in the car talk on the phone or pull over to the side of the road to talk on the phone.

Employees operating any motor vehicle while working or in a company vehicle must always follow governing state, federal and local laws regarding the use of cell phones and other personal electronic equipment.

V.  REIMBURSEMENT FOR BUSINESS CALLS ON PERSONAL WIRELESS PHONE

If an employee's job duties do not include the frequent need for a cellular device, the employee is not eligible for an allowance. Such employees may request reimbursement for their business related cellular calls. The individual should make personal payment to the provider, and then submit a request for reimbursement. 

The reimbursement rate is $0.45 per minute for domestic business calls which exceed the base plan.  International calls will be reimbursed at the rate detailed on the invoice.   When requesting reimbursement, a copy of the cellular bill, detailing the individual calls to be reimbursed along with the business purpose, needs to accompany the reimbursement request. 

No reimbursement for minutes covered by a base plan will be provided.

VI. PAY AS YOU GO PLANS

Business calls made on Pay As You Go Plans will be reimbursed at the invoiced rate.  A copy of the cellular bill detailing who was called and the business purpose must accompany the reimbursement request.

VII. PAYROLL PROCESSING

Once the Purchasing Department receives the Allowance Request Form and any existing service is transitioned into the employee’s name, the paperwork will be submitted to the Payroll Department to add the allowance to that individual’s payroll check. Reminder: appropriate payroll taxes on the allowance amount will be withheld from the paycheck, and the amount of the allowance will be included on the individual’s year-end W-2.  As of July 1, 2008, bills have been presented to the legislature that may change the taxable nature of this allowance. 

VIII. FEES FOR CONTRACT CHANGES OR CANCELLATIONS

If, prior to the end of the cell phone contract, a personal decision by the employee, or employee misconduct, or misuse of the phone, results in the need to end or change the cell phone contract, the employee will bear the cost of any fees associated with that change or cancellation.

If, prior to the end of the cell phone contract period, a departmental decision (unrelated to employee misconduct) results in the need to end or change the cell phone contract, the department will bear the cost of any fees associated with that change or cancellation. For example, the employee's supervisor has changed the employee's duties and the cell phone is no longer needed for business purposes. If the employee does not want to retain the current contract, change or cancellation fees will be reimbursed by the department with proof of fees incurred.

IX. DOCUMENTATION AND REVIEW REQUIREMENTS

The Allowance Request Form and a copy of the employee's most recent cellular device invoice must be submitted to Purchasing to initiate an allowance.

The Supervisor is responsible for an annual review of employee business-related cell-phone use, to determine if existing cellular device allowances should be continued as-is, changed, or discontinued. Please notify Purchasing immediately of any changes. 

I:\Departments\BUSI\Business Office\AP\Cell Phone\Carleton Cell Phone Policy

 Revised July 2008