Cell Phone Allowance Program

The University has a Cell Phone Allowance program available for certain employees whose job responsibilities necessitate the regular business use of a mobile phone.  Employees must be able to substantiate the business need and meet IRS eligibility requirements.  Under this program, employees use their personal cell phone for business use and in exchange, are paid a non-taxable monthly allowance from their department's Banner index.  Allowances are intended to cover a business use portion of all costs related to the personally owned cell phone (phone, subscription plan, supplies, insurance, all other costs), and are paid out at either $20, $30 or $40 per month at the Dean/Director/Department head’s discretion.  The monthly cell phone allowances are paid through Payroll during the regular pay cycle along with the employee’s regular wages.    

Eligibility

To be eligible for a cell phone allowance, an employee must meet the Internal Revenue Service (IRS) criteria below for business need.  According to the IRS, a bona fide business purpose exists if an employee demonstrates a real business need for the individual's presence or use of their personal cell phone. This means cell phone usage must be necessary and integral for the employee to perform job duties, not just a matter of personal convenience.  

 IRS Criteria for determining business need for the cell phone allowance:

• Employee is regularly required to speak with clients/colleagues when away from the office or outside their work schedule.
• Employee has a business need to use a personal cell phone on a frequent basis or is always required to be available due to work-related emergencies
• The allowance must be paid to the employee for non-compensatory reasons
• The allowance cannot be a condition of hire nor stipulated in employee’s employment contract

Employee Responsibilities

• Employee will purchase cellular phone service and equipment and assume responsibility for vendor terms and conditions.
• Employee agrees that they are responsible for plan choices, service levels, calling areas, service and phone features, termination clauses, and payment terms and penalties.
• Employee agrees that they are responsible for the purchase, loss, damage, insurance, and/or replacement of phone equipment.
• Employee will promptly report to their department head any updates or changes regarding cell phone numbers or plan changes that could impact the access to cellular services.
• Employee agrees to carry the cell phone with them, keep it charged and in operational condition, use it appropriately, and be accessible for business use of the cellular phone device as required by their department head or supervisor.
• Employee agrees to abide by policies including protected information as established by the University.
• Employee will register phone with “Lobo Alerts” for emergency notification purposes.
• Employee acknowledges and agrees UNM is not liable for any illegal or prohibited use of this cell phone.
• Employee has turned in any and all UNM provided cellular devices, and service has been terminated.
• Employee will ensure proper device compliance with technology standards as required by their individual role and IT guidelines.

Other Information 

• These employee classifications are not eligible for the allowance:
  • Undergraduate student employees and Graduate student employees
  • Temporary staff, On-Call staff, and Working Retirees
  • Temporary Faculty and Non-Credit Teachers
• The first payment will occur on the first available full pay period after all paperwork has been processed and approved and the allowance is reflected on the employee’s job record in Banner. Payroll will not process adjustments for prior pay periods due to late paperwork or delayed processing in Banner.
• *Exempt employees can receive up to $40 per month.
• *Biweekly employees will receive a prorated amount on each paycheck based on amount requested: ---> (i.e. $40 option = $18.46/paycheck, $30 option = $13.85/paycheck, $20 option = $9.23/paycheck).
• Payment is not subject to any type of withholding in the employee’s paycheck.
• Restricted indexes may not be used to pay personal cell phone allowances. Contact your Contract & Grant Accounting office for more information.
• This agreement expires on June 30th of the fiscal year. A new agreement is required to be reviewed and approved at the start of each fiscal year to continue the allowance.
• Aside from the Cell Phone Allowance, the University will not pay the employee for any additional cell phone related costs including the cost of the cellular device, rate plans, supplies or insurance. The monthly allowance is the only payment that the University will make to an employee in regards to business use of their personal cell phone. 

Annual Window to Enroll in the Cell Phone Allowance Program

Several weeks prior to the July 1^st start of a fiscal year, HR Agents and Fiscal Agents are contacted and asked to review the existing cell phone allowances in their respective areas. For the upcoming fiscal year, HR Agents and Fiscal Agents are tasked with determining which cell phone allowances to continue, which to terminate, and which new employees need to be enrolled in the program.  All employees either beginning a new cell phone allowance or continuing an existing cell phone allowance are required to provide the standard written “Personal Cell Phone Allowance Request and Agreement” form for the upcoming fiscal year.  The agreement must be completely filled out and be signed by the employee, the employee’s supervisor and the Dean/Director/Department head.  Agreements must be sent to the appropriate Unrestricted Accounting office (Main/Branch or HSC) by the deadline for review, and are subject to approval.

Employees who missed this annual enrollment window can request to be enrolled in the Cell Phone Allowance Program during a fiscal year through the ePAF process.

The Sponsoring Agencies of UNM Restricted funds generally will not allow UNM Cell Phone Allowance payments on our Contracts & Grants, but at times will give approval when a strong justification shows a direct charge to a particular contract or grant.  Please contact the Fiscal Monitor on your Contract or Grant for details.  As an alternative, Cell Phone expenses through UNM-IT may be allowed on a Contract or Grant as a direct charge.  Please contact the applicable Contract & Grant accounting office to determine if cellular phone expenses can be allowed as a direct charge on your restricted contract or grant by the Sponsoring Agency.