University of North Carolina at Chapel Hill recently established a policy for mobile communication devices that permits the University to issue a monetary stipend to select employees who meet the policy criteria pertaining to the use of
wireless devices for business purposes. The stipend ($35 for voice only plan, $70 for voice and data plan) will be included in the employee’s paycheck, reported on the employee’s W-2 and is subject to all regular payroll taxes. The policy also indicates that
federal grants and/or sponsored projects may not be used to pay the stipend for a MCD unless specifically allowed by the granting agency.
Are there other institutions who have a similar policy and if so have you made any exceptions to allow this type of stipend to be charged to contract and grants? What type of documentation do you require to consider such exceptions and
how is the transaction recorded in your financial system?
Vanessa L. Peoples
UNC-Chapel Hill
Office of Sponsored Research
Director, Financial Reporting & Cash Management
919 962-4676