Employee Allowance Procedures
Employee allowance for electronic communication devices (ECD) including internet service:
An employee’s supervisor is responsible to determine the need for an employee to have an electronic communication device (including internet service.) An ECD allowance can offset a portion of or all expense of the ECD or service.
- It is the responsibility of the employee’s supervisor to
determine the dollar amount of the allowance for ECD. This amount
should be based on the cost of service which allows the employee to
conduct University business in an efficient manner and should cover
the employee’s projected business-related expenses only. Generally
accepted reimbursement rates are $15 for low business use, $25 for
moderate business use, $40 for high business use, and $45 for data
services per month. If amount requested exceeds $85 per month, an
explanation must be attached to the allowance form. In no case
shall the amount of reimbursement exceed the cost of service. The
allowance shall not exceed $200/month or $2,400 annually for all
combined services. Late fees and overages are not reimbursable.
- After reviewing and approving an employee to receive an
ECD allowance, the ECD Allowance Request Form must be completed and
forwarded to the applicable Chancellor/Vice Chancellor, or designee,
for signature. The form must then be forwarded to the Office of
Information Technology with all applicable
signatures/authorization. IT will forward the final approved forms
to Financial Services/Payroll for processing.
ECD Allowance Request Forms for newly qualified employees will go into effect within 30 days of receipt in Financial Services. To renew the allowance, a new ECD Allowance Request Form must be submitted no later than January 31st of each year.
The ECD Allowance Request Form will provide approval to pay out the allowance in equal installments over the year based on the pay cycle in which the employee is normally paid.
This allowance does not constitute an increase to base pay and will not be included in the calculation of percentage increases to base pay due to annual increases, job changes, etc.
- Under IRS
regulations, this allowance is taxable to the employee. The cost of
the ECD allowance plus applicable employer/employee paid benefits
will be an expense of the authorizing department’s budget.
employee must maintain an active ECD service plan as long as the ECD
allowance is in place.
- A copy of the employee’s most recent active
billing statement must be attached to the ECD Allowance
- An annual review of the business need for the
ECD and associated allowance must be completed by the employee’s
supervisor. An ECD Allowance Request Form must be submitted no
later than January 31st of each year. This form will provide
approval to pay out the allowance in equal installments over the
year based on the pay cycle in which the employee is normally paid.
- If the status of a qualified employee changes during the year and the employee should no longer need an allowance for ECD, Financial Services/Payroll must be notified by ECD Allowance Request Form of this change in order to stop the payment of the allowance. Any overpayment of allowance must be repaid by the employee to the University.
- The telephone number of the ECD will be made available
to the university as required by your duties.
- If Blackberry/PDA
services will be requested, individuals must contact Office of
- Only “direct” costs may be charged to grant
and contracts. Therefore, the allowance cannot be charged to grant
- Many wireless carriers offer a discount to state employees. Please contact carriers for more information.
- It is the responsibility of the employee to enter
into the cellular phone contract, or contract for internet services,
under their own name. The purchase of any equipment is also the
responsibility of the employee.
- A department may choose to
reimburse for all or part of the equipment purchase. It is the
responsibility of the employee’s supervisor to determine the dollar
amount of the equipment reimbursement for the ECD. In no case
should the reimbursement exceed the cost of the equipment.
Reimbursement should be limited to one device per the employee’s ECD
service contract term.
The applicable section of the ECD Allowance Request Form must be completed and submitted to the Office of Information Technology for inclusion in the employee’s wages. IT will forward the form to Financial Services/Payroll and this allowance payment will be made to the employee on their next available paycheck.
- A copy of the receipt for equipment purchases must be attached to the ECD Allowance Authorization Form.
Change to status
- If the employee changes the ECD service contract, as in
modification or termination, then the employee may bear the cost of
any fees associated with that change. For example, if the employee
terminates employment with Montana State University Billings and no
longer wants to keep the ECD service contract, then the cost of that
change may be the employees’. The departmental manager will make
the determination of who pays for any fees associated with changes.
- If Montana State University Billings should determine that it is necessary for the employee to terminate or change the ECD service contract, then the University will bear the cost of any fees associated with that change. Reimbursement of such expense will be made to the employee through Accounts Payable. See Departmental Purchases Procedures.