Employee Purchase Program for Personal Computers

TBC Employee Purchase Program for Personal Computers
Department	Finance
Creation Date	October 2, 2003
Approval Date	October 2, 2003

Organizational Scope

This policy applied to all permanent full time or permanent part time employees who have completed their probationary period.

Purpose

The Employee Purchase Program for Personal Computers has been established to provide employees who have completed their probationary period the opportunity to purchase a personal computer system every five (5) years.

Policy

This policy defines the procedures, requirements and responsibilities of employees who apply for the Employee Purchase Program for Personal Computers. Michener supports the software copyright licensing laws, and reminds employees that only appropriately licensed software should be used.

 General Procedures

An employee submits an application form (attached) to Finance, along with a quotation detailing the vendor information, equipment and software to be purchased. Upon approval of the Director, Finance, the employee will either:

1. receive a cheque payable to the vendor in the amount of the loan or
2. upon receipt of proof of purchase, receive a cheque payable to the employee
   • A promissory note (see attached) must be completed outlining all terms and conditions, the loan amount, repayment schedule and signatures of the employee.

 Repayment of loans

Repayment for computer loans will be through bi-weekly payroll deductions. The following scale sets out the term of repayment schedule based on amount requested.

• Each loan maximum is $3,000. (Minimum $500.)
• Loans $   500 to $1,500 to be repaid in 26 pays (i.e. 1 year)
• Loans $1,501 to $3,000 to be repaid in 39 pays (i.e. 1.5 years)

In accordance with the current tax laws, this plan constitutes an interest free loan and imputed interest must be calculated by Michener at Canada Revenue Agency’s prescribed rate, and declared as a taxable benefit on the employee’s T4 information slip.

Forms

Employee Purchase Program for Personal Computers Forms

Revision History