The university has created a new policy Managing Wireless Voice/Data Services to ensure compliance with current IRS requirements.  If a wireless voice/data device and service is owned by the University, IRS regulations subject the University and the user to significant compliance requirements.  The IRS has been auditing higher education specifically for cell phone/PDA substantiation and several institutions have been required to pay hundreds of thousands of dollars in back taxes.

Substantiation requirements include detailed documentation of all calls, evidence of review to identify personal from business calls, and, a method to ensure the employee is taxed on the amount of personal use.  The IRS can declare that all undocumented use is personal and must be taxed, even if the calls were mostly for business.  Implementation of procedures to comply with these regulations would create a significant burden to both administration and the employee.  A personally owned device does not have the same restrictions on use for personal purposes as a university-owned device and removes the need for carrying both a personal and business phone.

The stipend process required by the new policy is designed to alleviate the significant administrative burden, on both employees and the university, of providing the extensive substantiation required to fulfill IRS reporting requirements while compensating the employee for the business use of the service plan and resulting withholding taxes.

Additional Information:

• Policy - Managing Wireless Voice/Data Services
• Frequently Asked Questions
• IRS Regulations

• Procedures - Providing Employee Stipend For Wireless Voice/Data Services
• Form - Wireless Service Communications Agreement (Stipend Request Form)

• Procedures - Requesting Approval to Purchase Department Wireless Phone
• Form - Approval Request For Department Wireless Phone

• Procedures - Requesting Use of Department Wireless Phone
• Form - Department Wireless Phone Use Agreement
• Form - Department Wireless Phone User Call Log
• Form - Department Wireless Phone Check Out Log

Government Employee Discount Wireless Service Plan Information

Pager Service through WWU Telecommunications
 

If you have questions, please contact:

Telecommunications (x3600) for questions regarding:

• Transitions options
• Personal service plans/discounts
• Blackberry E-mail Service
• Age and purchase price of current university device

Human Resources (x7410) for questions regarding:

• Policy
• Procedures
• Forms

Purchasing (x3340) for questions regarding:

• Departmental phone purchases
• Employee reimbursements for purchase of device