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Cell Phone Stipend Policy

 

1. Purpose

This policy outlines the eligibility, use, and reimbursement procedures for employees who will use their personal cell phone to perform some or all of their job duties and/or responsibilities.  This Dearborn campus policy provides Dearborn campus Units with guidance to implement .

2. Policy Statement

To support job functions that require frequent business communication while away from the campus, on frequent travel, or job roles with on-call availability, UM-Dearborn may provide a monthly cell phone stipend to select eligible employees. This stipend is intended to offset the cost of using a personal mobile device for business purposes.

Note: This stipend does not cover the full cost of the employee鈥檚 phone bill and is not intended to do so.

In addition, University-provided cell phones with cellular service may be issued to select eligible employees as defined below and whose job responsibilities require frequent and immediate communication, fieldwork, after-hours availability, or on-call duties. Cell phones are provided as a business tool and must be used primarily for university-related activities.

3. Eligibility

Employees may be eligible for a cell phone stipend if their role meets two or more of the following criteria:

  • Requires regular work-related communication via phone, text, or mobile apps while away from campus
  • Involves periodic travel to off-campus locations in order to perform required job functions
  • Requires regular availability outside of the Unit鈥檚 regular business or service hours
  • Requires occasionally managing, supervising, or supporting teams, clients, or operations from a remote location
  • Is designated as on-call for IT, operations, or security needs
  • Involves handling information or responsibilities that require a high level of confidentiality or data security

Examples of eligible roles for cell phone stipend include, but are not limited to:

  • Senior Officers and/or Senior Managers
  • Facility and Campus Operation Personnel
  • Campus Safety and Emergency Staff
  • Student Services Staff
  • On-Call IT or Support Staff

These specific roles may be eligible for a university-provided cell phone in lieu of stipend:

  • Executive Assistant to the Chancellor or Provost
  • Human Resources, Senior Director
  • Human Resources, Director
  • Human Resources, Consultant
  • Equity, Civil Rights & Title IX Office, Director, Deputy Director, Coordinators

4. Stipend Administration & Amount

To ensure compliance with the Internal Revenue Code (IRC), the University of Michigan has revised  to ensure Units are properly documenting the payment of cell phone stipends. All units on the Dearborn campus paying stipends to employees under this policy are required to comply with the revised 鈥淭ech Tools鈥 policy on or before July 1, 2025.

To comply with the new SPG, Units are now faced with the burden of collecting and maintaining documentation to satisfy the IRC depending on whether the 鈥淭ech Tools鈥 stipends are processed as a taxable or tax-free payment to the employee. 

To pay an employee on a tax-free basis, each calendar year Units are now required to collect from each employee a copy of their cell phone statement and request the employee complete .  Units should retain both documents for audit purposes, per the , and use payroll code TTN on the PAR.  If your Unit selects this method, please contact Financial Services by email if you would like to access a customizable Google Form for collecting stipend verifications.

Units may avoid collecting extra documentation and instead pay eligible employees on a taxable basis, per the procedure below.  Units may  in order to equal the $600 calendar amount allowed by the SPG.  Unit should use payroll code TTA on the PAR for taxable payments.

Unless your unit has a written business process to collect verification statements and personal cell phone bills to comply with IRC regulations, it is recommended that Units process their 鈥淭ech Tools鈥 stipends as taxable income using the  to mitigate the impact of income tax.

5. Device and Plan Requirements

Employees are responsible for obtaining and maintaining a mobile device and service plan that allows them to  per SPG 601.33. The company does not reimburse for the purchase of devices under this policy.

6. Acceptable Use

Employees receiving a cell phone stipend are expected to:

  • Ensure their device is available and functional during work hours and for on-call responsibilities
  • Use their mobile phone for work-related communications in a professional and secure manner
  • Comply with all applicable privacy, data security, and confidentiality guidelines
  • per SPG 601.33

7. Review and Approval

Managers are responsible for identifying and recommending eligible employees for the cell phone stipend. All stipend requests are subject to approval by the HR Department and/or the employee鈥檚 direct supervisor.

Eligibility and stipend amounts are reviewed periodically and may be adjusted based on changes in job function or organizational policy.

8. Data Return / Deletion

Users shall return or delete sensitive institutional data maintained on personally owned devices upon request from the University or when their role or employment status changes such that they are no longer an authorized user of that data.

9. Incident Reporting

Personally owned devices that access or maintain sensitive institutional data and that are lost, stolen, have been subject to unauthorized access, or otherwise compromised must be reported within 24 hours per SPG 601.25, Information Security Incident Reporting Policy.

10. Device Inspection

In the course of an incident investigation, the University reserves the right to inspect a personally owned device that accesses or maintains sensitive institutional data. Any access to a personally owned device will be carried out in accordance with , Privacy and the Need to Monitor and Access Records, as well as follow other relevant University protocols, and legal or law enforcement requirements.

11. Termination of Stipend

The stipend may be discontinued if:

  • The employee changes roles within the university; employees will need to request a stipend from their new Unit
  • The employee鈥檚 job role or responsibilities no longer meets the eligibility criteria listed above
  • The employee separates from or is terminated from the University of Michigan.

Policy owned by: Business Affairs Division

Last reviewed: July 24, 2025

Next review: July 24, 2027