Agenda - 06-21-2011 - 5f - Laserfiche WebLink

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3 Employee Cellular Device Policy I) INTRODUCTION Purpose The purpose of this policy is to provide employees with an option to be provided a stipend for the business use of their personal cellular device. Due to business need, and in the course of carrying out job responsibilities, cellular devices jwireless phone and data services) are becoming a preferred method for carrying out business communications. Background The IRS requires detailed documentation of business use for payment of employee business expenses not otherwise allowed as non-taxable benefits. The IRS considers cell phone a taxable fringe benefit unless business and personal use can be substantiated through detailed documentation. The payment of a taxable cell phone stipend will alleviate the need to maintain detail- records of business and personal use, and the need to carry two cellular devices on a daily basis_ Although the allowance is taxable, it is believed that the benefits to the employee outweigh the costs. The benefits include: 1) a log is not required, 2) no monthly reporting is required, 3)-phones may be used for personal calls and be combined or enhanced with other personal plans. Scope All employees and elected officials of the Orange County are subject to this policy. II) Proposal General Employees requiring cellular devices to perform their work may receive a stipend to compensate for business use of a personal cell phone. The stipend will be included in the employee's pay check as a taxable fringe benefit. County Employees ca.n continue to use the County-owned cellphone instead of receiving a stipend. Additionally, the stipend must be approved by the Department Head. Required means of communication that relates to radio or any direct connect equipment or service does not apply e.g. Push to talk. Financial Services ~ Proposed Cell phone Reimbursement Policy