The UC Office of the President has announced a new 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. The new policy will be published shortly in Business and Finance Bulletin G-46, Guidelines for the Purchase and Use of Cellular Phones and Other Portable Electronic Resources. 

Effective with the July 1, 2009 pay date, employees with university-owned cell phones will pay additional federal and state taxes based on an imputed cash value of their university cell phone and cell phone plan. At the same time, UC Santa Barbara will begin providing a monthly cash allowance to offset the cost of this tax. 

The new policy will be effective with June earnings paid on July 1, 2009.

For additional information on the policy, as well as Frequently Asked Questions, please go to the Accounting Services & Controls website, under "Forms & Information," at http://accounting.ucsb.edu/Forms/, under the "Accounts Payable" heading.

We will be hosting Town Hall Meetings on the following dates in the Human Resources Learning Center to discuss the new policy and answer any questions:

Tuesday, 5/12, from 1:30 pm - 2:30 pm
Wednesday, 5/20, from 11:00 am - 12:00 pm
Tuesday, 5/26, from 10:00 am -11:00 am
Thursday, 5/28, from 1:30 pm - 2:30 pm

Please register for which session you would like to attend at https://accounting.ucsb.edu/register.

If you have any questions, please contact me at x5882 or jim.corkill@accounting.ucsb.edu.