The University of California cell phone policy implemented in June 2009 (Business and Finance Bulletin G-46) is being suspended through January 31, 2010, in response to an appeal from President Yudof. This policy required employees with university-owned cell phones to pay federal and state taxes based on an imputed cash value of their university cell phone and cell phone plan. The University has been providing a cash allowance to offset the additional taxes.
The suspension was granted by the IRS in response to an appeal from President Yudof. It is based on the assumption that the Mobile Cell Phone Act of 2009 (H.R. 690 and S. 144), introduced this year to modernize the tax treatment of employer-provided cell phones, will be approved by Congress. If the legislation is not passed, the IRS has agreed to consider an additional extension for the University.
UCOP is automating the modifications to PPS. The cell phone imputed income and cash allowance distributions (DOS codes CEL and CE2) which are currently established in PPS for employees with University-provided cell phone equipment will be automatically modified to include the following end dates:
The programming that will end the existing PPS cell phone related distributions will run the evening of Monday, October 12. The changes will be visible in PPS on Tuesday morning, October 13.
As of October 28 for biweekly-paid and October 30, 2009 for monthly-paid employees, the imputed income, income tax and reimbursements related to University-owned cell phones will no longer appear on employees’ earnings statements.
Questions about this policy should be direct to the PPS Help Desk at (530) 752-7750, or to your Payroll Specialist.
