News and Events

Friday, August 01, 2008

The University has updated its Mobile Communication Resources Policies and Procedures to include a payroll allowance option. The allowance option is summarized below. The updated policy in its entirety is posted at: www.usc.edu/policies (Administrative and Business Practices).

Should a supervisor require an employee to utilize a mobile communication resource, the university prefers to support this usage via an allowance.  The payroll allowance supports the portion of the mobile communication resource needed for business without the administrative burden of retaining monthly statements and distinguishing business from personal use. The allowance also ensures appropriate tax treatment of the resource.

Payroll Allowance Quick Facts:

• The allowance rate should be established based on the portion of the mobile communication resource needed for business.
  
  
• The maximum allowance rate may not exceed $200 per month per person.  Amounts exceeding the maximum require approval from a Vice President / Dean.
  
  
• Costs for mobile communication devices and accessories are considered part of the allowance rate.
  
  
• The allowance will increase the employee's gross income, and the amount will be subject to income and employment taxes.
  
  
• No benefits are taken from the allowance amount, including retirement contributions.
  
  
• The allowance is subject to fringe overhead.
  
  
• Any costs incurred by the employee for the mobile communication resource beyond the allowance amount are the employee's personal responsibility.
  
  
• Personal use is permitted given that the allowance is based on the portion of the resource needed for business.
  
  
• Monthly statements do not need to be retained or submitted.

Establishing the Payroll Allowance:

• The Home Department Coordinator must indicate the amount of the allowance and provide an original signature on the University Payroll Services' Employee Data Form (http://ais-ss.usc.edu/ppbsdoc/index.html).
  
  
• A copy of the Mobile Communication Resource Authorization Form (Forms and Documents: www.usc.edu/dc) signed by a director or equivalent and including the business purpose must be attached to the Employee Data Form. This documentation must be submitted each fiscal year, as the allowance cannot cross the fiscal year boundary. Originals of the annual documentation must be retained within the department.
  
  
• When processing an allowance, University Payroll Services will assign the following Object Code and Earn Type:
  
  
  • OBJECT CODE - The object code for mobile communication services: 14242.
    
    
  • EARN TYPE - The earn type for mobile communication services: MOBERN.

Questions: 

Please post questions regarding the allowance option to the Business Services blog. There you'll see responses to questions, along with Q&As from other staff: www.usc.edu/bservices/blog. 

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