Telecommunication Allowance Program
Texas Tech recognizes that the performance of certain job functions may be enhanced by the provision of Electronic Communication Resource (ECR) (Wireless Devices); however, the IRS has recently made assumptive interpretations that wireless devices used by an employee is a taxable use. Therefore, Texas Tech will no longer be providing ECR, unless specifically required and approved.
If it is determined that there is a business need for an employee to have an ECR, a department may provide eligible employees with a Telecommunication Allowance to supplement the cost of the ECR that the employee personally purchases. The allowance program will allow the university employee to combine their business and personal phone service, but the employee will be personally responsible for the service agreement. The Telecommunication Allowance will be recorded as additional compensation separate from an employee’s base compensation to be included in the employee’s gross income and treated as wages for payroll tax purposes.
There are two types of Telecommunication Allowances:
- Telecommunication Service Allowance will supplement the cost of service for the wireless device. This will be a predetermined amount added to the eligible employee’s monthly wages.
- Telecommunication Equipment Allowance will supplement the cost of a purchase or upgrade of an Electronic Communication Resource. The equipment allowance may be provided to an employee once every two years. The equipment will be owned by the employee. As such, the university will not pay for activation fees or related charges
Employees and departments participating in the Telecommunication Allowance program must ensure that the guidelines set forth in TTU OP 48.05/TTUHSC OP 55.05 are adhered to. All users with wireless devices that access any Texas Tech Information Resources must comply with the TTU or TTUHSC Portable Computing Security policy.
Steps to Establish Telecommunication Allowance
Employee Completion Steps
- Download and complete the Telecommunications Allowance Request Form (Instructions for Deptartmental Administrator).
- Telecommunication Equipment Allowance is as follows:
- $50 for cell phones/wireless data cards
- $150 for smart phones/PDAs
- Telecommunication Service Allowance is as follows:
- $35 per month for voice plans
- $40 per month for data plans
- $55 per month for wireless cards
- Requests that exceed the set amounts for the Service Allowance must obtain the necessary signature on the request form.
- Submit the completed Telecommunication Allowance Request Form to your department administrator for approval and completion.
Department Administrator Completion Steps
- When the completed Telecommunications Allowance Request Form is submitted to you, follow the steps outlined in the Instructions for Deptartmental Administrator to complete the process.