Office of the Chief Information Officer
320 Baker Systems Engineering
1971 Neil Avenue
Columbus, OH 43210
Phone: (614) 292-6553
Fax: (614) 688-4226

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Information Technology Policy and Services

FAQ on Payment for Employee Home and Off-Campus Internet Access

Policy on University Payment for Employee Home and Off-Campus Internet Access

Office of the CIO
The Ohio State University

May 23, 2004

General Statement

University community members and the university itself increasingly rely on access to Internet communications and network-based electronic information resources to carry out the basic functions needed to support the university's teaching, research, and outreach missions. This access is needed in the classroom, the lecture hall, the laboratory, the office, often off-campus, and often at home. University employees, whether faculty, staff or students, can make significant contributions to university business and the university's mission outside normal business hours and from off-campus locations. These contributions are dependent on ubiquitous, reliable, and often high-speed, Internet access.

There are a number of off-campus Internet access options for university employees. The university's HomeNet dialup service is available at no charge with low-speed service and a limited number of often-busy dial-up lines. OSUWeb.net dial-up service is available at low cost with reliable and easily accessible higher-speed service. There are also a number of commercial dial-up Internet service providers available with similar service at similar and higher costs. In addition, high-speed cable modem, satellite, and DSL Internet connection services are available at the highest cost.

The university may provide for payment of university employees' home and off-campus Internet service connection subscription costs when appropriate to support university business and where funding is available in the employing unit or sponsored research project. The appropriate level of Internet service must be decided in the unit based on university needs and employee duties.

Federal tax regulations require detailed documentation of business use for payment of employee business expenses not otherwise allowed as non-taxable benefits. Home and off-campus Internet connection services are not an allowed non-taxable employee benefit. And Internet service providers do not provide records to segregate business and personal use during connections. To avoid burdensome individual detailed logging and record keeping for university employees and to simplify administration for the university, approved employee Internet connection costs will be paid as an Internet connection allowance. This allowance will be treated as taxable compensation and the Internet connection may be used for both business and personal purposes with no requirement to maintain detailed records of use.

Applicability

This policy applies to university employees requesting payment for home and off-campus Internet connection subscription service charges where the connection is used at least partially for university business purposes. The policy also applies to university academic and administrative units and sponsored research projects approving payment of employee expenses for such Internet connection services.

Policy

University payment for employee home and off-campus Internet connection subscription expenses will depend on an appropriate business need and justification and on the availability of funding. The responsibility for determining business need and justification and for supplying funding will rest with the employing unit or sponsored research project. Internet connection allowances may be granted subject to the following:

An Internet connection allowance may be provided for an employee whose duties and responsibilities require Internet access while off-campus, outside normal business hours and locations, or from home. Examples of appropriate employee duties and responsibilities are included in the Frequently Asked Questions (FAQ) to this policy.

An Internet connection allowance must be approved by the university unit or sponsored research project where the funding originates. An allowance may apply to more than one Internet connection service, for example high-speed home access and off-campus dial-up access, depending on university business needs. The specific allowance amount is at the discretion of the approving unit, but is limited to actual startup and installation charges and a maximum of up to $75.00 per month for actual ongoing connection service charges. The approving unit or project must provide full funding.

Employees who receive an Internet connection allowance to obtain external service must subscribe directly with Internet service providers and pay the providers directly.

Departments or units providing employee allowances for connections through OSUWeb.Net may pay for the service through internal university mechanisms. This is the most economical service for the university.

Allowances will be treated as taxable compensation and processed through the university payroll system. If the allowance is to be paid directly to an employee subscribing to an external service, the employing unit should use the payroll system's TXR earnings code. If the allowance is to be paid to an internal university unit rather than the employee, the employing unit must use the payroll system's TGI earnings code. Both earnings codes are available on the drop down menu within the Additional Pay panels and will ensure that tax is accurately withheld and reported on the employee's W-2 form and that retirement is not withheld.

The employing unit must maintain records of Internet connection allowances using the Request for Payment of Internet Connection Allowance form (PDF). The unit should review continuing allowances annually to verify the allowance amount, continuing need, and availability of funding. Employing units must provide a summary report of all approved continuing allowances by service provider to the Office of the CIO when requested to help aggregate total usage in support of university volume pricing arrangements.

While no additional records or documentation are required for tax purposes or by the university, the approving or employing unit or the units through which it reports may require additional records or documentation at their own discretion.

Subscription Internet connection services obtained with an Internet Connection Allowance under this policy can often be used in off-campus locations while traveling. However, payment or reimbursement for short-term Internet connection expenses for services used during a specific trip must be associated with a travel order and travel authorization "T" number and must be processed through the university Travel Office.

In general the use of a home Internet connection provided through a university Internet connection allowance is subject to the university's Policy on Responsible Use of Computing Resources where appropriate. However, the Responsible Use policy's limits on personal use do not apply.

Policy Version 1.0

Approved by the University Coordinating Council on July 23, 2004

Policy Review and Update Task Group

Joe Irvine, Office of Legal Affairs

Bob Kalal, Office of the Chief Information Officer

Mail Comments or Questions to the Task Group at: ITPolicy@osu.edu

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