May 26, 2009
KEY ADMINISTRATORS/KEY SUPPORT STAFF (Excluding UCSD Medical Center)
This is to inform you of the change in UC’s cell phone policy to be effective June 1, 2009. The change is a result of an audit conducted by the Internal Revenue Service (IRS).
UC will come into compliance with the IRS’s rules governing the use of employer-provided cell phones, and PDAs that have cell phone capability, with the new policy.
Under the new policy, the value of an employee’s UCSD provided device and monthly service charge will be imputed into their gross wages. Additionally, a stipend will be provided to these employees to cover the approximate amount of anticipated payroll taxes associated with the imputed income. UC has adopted this policy to avoid the detailed substantiation that the IRS would otherwise require from the individual employee and the employee’s department.
UCOP will be providing new codes for the Payroll system during May so that the policy can be in effect for the last bi-weekly and monthly paydays scheduled for June. The goal is that the necessary payroll codes would be entered prior to the cutoff dates for those respective paydays. A “stipend calculator” is also being provided on a UCOP web site.
Please begin notifying employees who have UCSD provided cell phone devices of the impending change in policy. We also encourage you to reassess the business need for the current cell phone devices provided by your department.
An Open Session to discuss the policy is scheduled for:
- Wednesday May 27, 2009, from 9:00 – 11:30 in the Bear Room located in the Price Center West above the Theatre.
Further information on the policy, procedures and FAQs is located on Blink at http://blink.ucsd.edu/go/cellphonetaxes
Please feel free to contact Sally Brainerd at firstname.lastname@example.org or (858) 822-1814 for further information or to schedule an information session in your department, division or school.