New Cell Phone Policy
The UC Office of the President has announced an update to the cell phone policy to bring the University into compliance with IRS rules regarding cell phone use for business purposes. Under the new policy, the value of University-provided cell phone service and equipment is treated as a taxable fringe benefit, however, the University will be offsetting the tax with a monthly cash allowance. A UC Davis Directive on this matter was published May 4, 2009. Additional clarification on what expenses are covered under the policy was provided in a UC Davis Directive published June 11, 2009. See the updated policy in Business & Finance Bulletin G-46.
Dates & Deadlines
Effective June 1, 2009, all employees with University-owned cell phones will pay additional federal and state taxes based on an imputed cash value of their university cell phone (purchased on or after June 1, 2009) and their current cell phone plan. At the same time, UC Davis will begin providing a monthly cash allowance to offset the cost of this tax. Entry in PPS must meet applicable deadlines to be effective with the June 24, 2009 (biweekly) or July 1, 2009 (monthly) pay dates.
Resources
Payroll Services has new resources on the PPS Web site to assist you in complying with the new policy. Below are the resources you will find:
Please contact the PPS Help Desk at (530) 752-7750, with any questions or concerns.
