How do I determine an appropriate amount to be paid as an equipment purchase allowance as well as monthly service allowance?
A lot of discretion was left with the department heads regarding the amount of the cell phone allowances. However, the amount of the allowances, as well as the need for the business use of a cell phone or other wireless device must be reasonable and appropriately justified and documented. If an employee currently receives a University provided cell phone or other wireless device, the current cost may be a good basis for the allowance. This amount may be “grossed-up” to cover the additional taxes that the faculty or staff member may have to pay. The actual cost of new equipment devices would be an appropriate basis for an equipment purchase allowance.
