HomeMy WebLinkAboutAgenda - 06-21-2011 - 5fORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 21, 2011
Action Agenda
Item No. 5--~
SUBJECT• Employee Cellular Device Policy
DEPARTMENT: County Manager and Financial PUBLIC HEARING: (Y/N) No
Services
ATTACHMENT(S):
Proposed Cellular Device Policy
INFORMATION CONTACT:
Frank Clifton, (919) 245-2300
Clarence Grier, (919) 245-2453
PURPOSE: To approve an Employee Cellular Device Policy for the reimbursement of business
use of employees cellular devices.
BACKGROUND: Due to business need, and in the course of job responsibilities, cellular
devices (wireless phone and data services) are becoming a preferred method for business
communications. Throughout the County, several departments and employees use County-
issued cellular devices (cellphone, PDA and etc.). Additionally, these same employees have
personal cellular devices that they utilize to perform their daily job responsibilities.
The proposed cellular device policy would provide a reimbursement to employees for their
business use of their personal cellular device. The reimbursement would be optional for the
employee and would have to be approved by the Department Head and or the County
Manager. The total reimbursement would be $35 monthly, and the reimbursement would a
taxable fringe benefit. Currently the County pays an average of $35 per month for 249 County-
issued cellular devices.
FINANCIAL IMPACT: The total financial impact would be $104,580, but would be off-set by the
current amount the County pays for cellular devices. The net cost to the County would be $0.
RECOMMENDATION(S): The Manager recommends that the Board approve the Employee
Cellular Device Policy.
ORANGE COUNTY
Employee Cellular Device Policy
FINANCIAL SERVICES
June 21, 2011
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
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Authorization
All requests for cellular service stipends must be approved by either the Department Head or by the
County Manager.
Qualifications
Employees may qualify for cellular service stipends only if their Department Head- has determined it
to be required for the performance for their job and the following criteria are met:
1) The job requires the employee to be mobile more than 50% while in or away from the
office. This includes on-call and after hour work.
Or
2) The job consistently requires timely and business critical two way communications for which
there is no reasonable alternative technology. Quick response is needed and if not met may
result in adverse impact to the County. (Simple convenience is not a criterion for a cellular
service stipend.)
Employees' eligibility based on these requirements must be documented by the Department Head.
Justification of need must be specific as to why other means- of communication provided by the
County (i.e. office phones, email; direct connect, radio, etc.) are not adequate to meet the
communication requirements of the employee's job..
Employee Responsibilities and Guidelines
The employee will purchase- cellular device service and equipment and assume responsibility for
vendor terms and conditions. The employees using personal cellular devices phones for accessing
County data are required to utilize screen locks for security. The employee is responsible for plan
choices, service levels, calling areas, service and phone features, termination clauses, and payment
terms and penalties. The employee is also responsible for the purchase, loss, damage, insurance,
and/or replacement of phone. equipment. Employee is responsible for immediately notifying their
Department Head if their device is stolen or lost.
The stipend agreement requires that the personally-owned device is available for business access.
An employee receiving a stipend must maintain active cellular service. The employee agrees to carry
the cellular device with them, keep it charged and in operational condition, and be accessible for
business use as-required by their department head or supervisor.
The employee agrees to appropriately use the phone in ways consistent with all applicable local,
state or federal laws. Cell phone users must be aware that state and municipal laws regarding the
use of phones while driving. Regardless of the legality, use of cellular devices while driving can
cause hazardous distractions, especially in adverse weather, heavy traffic, or limited visibility.
Financial Services ~ Proposed Cell phone Reimbursement Policy
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Levels of Stipend
There are many cell phone carriers with varying plans for phone equipment and service. The
payment levels are intended to cover a presumed level of business use on a personally-owned
device and service. The County will reimburse employees $35.00 per month for cell phone.
Payment of Stipend
Employees will receive their stipend in the -first payroll of each month. The employee's cellular
device stipend is taxable income and will be itemized on pay stub. Only one stipend for a single
cellular phone will be approved for each qualified employee.
Devices
An employee may use any cellular device for voice services. No hardware credit will be given for
voice services or data services.
III) Additional Information
Change in employment
If the employee resigns, is terminated, transfers departments, changes job duties, no longer
requires telephone services, or otherwise no longer qualifies for a stipend, the employee's
department head is responsible for advising Human Resources.
Personal Records
Personal employee records will not be reviewable by County management, only County business
related records will be reviewable.
Disclosure pursuant to public records law.
Existing North Carolina public records law says that only public records are subject to disclosure
upon request. Existing case law. says that emails of a personal nature and documents of a personal
nature, which are not related to government business, even if on a government owned piece of
equipment are not public records. Any County business related records on that phone would be
subject to disclosure, but that would be the extent of what was subject to disclosure. Cell phone
records related to Health Department clients and patients may be protected and not subject to
public records request.
Exceptions
Partial credit for voice and/or data services may be considered under reasonable business need.
Financial Services ~ Proposed Cell phone Reimbursement Policy
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DATE:
CELLULAR DEVICE AUTHORIZATION FORM
Approved: Q
Denied:. Q
Employee Name: Job Title:
Department: Division:
Phone: E-Mail:
Allowance Start Date: Amount of Stipend: TIER #
Please check all that apply:
^ Business critical ^ More than 50% away for the office
Business Justification:
Employee Certification:
By completing this form and signing below, 1 do certify that I have read the County's cellular device policy and agree to its
terms and conditions during my employment. I certify that the approved allowance will be used towards expenses I incur
for the cellular device. as described in the policy.
Employee Signature Date
Department Head Certification:
I have reviewed the above request and do hereby certify that the employee qualifies under the County's cellular device
policy requirements.
Department Head Signature Date
County Manager Certification:
County Manager Signature Date
Financial Services ~ Proposed Cell phone Reimbursement Policy