Policy Number: CS-1003-1988
Policy Title: Personal Acquisition of Computer Equipment
Policy Owner: Chief Financial Officer
Effective Date: October 1, 1988
Last Revised: November 27, 2019
On this page:
- Purpose
- Application and Scope
- Definitions
- Principles
- Accountability and Compliance
- Rules
- Policy Revision Date
- Attachments
- Specific Links
1. Purpose
The purpose of Mohawk College's ("Mohawk") Personal Acquisition of Computer Equipment Policy ("Policy") is to establish the framework of rules for full-time employees to purchase personal computer equipment through an interest-free employee loan.
2. Application and Scope
This policy applies to all full-time employees of the College.
3. Definitions
"Computer equipment" includes but is not limited to personal computer, laptop, notebook, tablet, iPad and external peripherals (mouse, monitor, keyboard, printer/scanner, speakers, external hard drive; DVD writer, , backup unit or power protection unit). Warranties, cases and parts for building a computer are not considered computer equipment.
"Full-time employee" means an employee who has a permanent position with the College and meets eligibility criteria for the College benefits.
4. Principles
A. Accountability
Mohawk College is accountable for the use of public funds.
B. Transparency
Mohawk College is transparent to all of its stakeholders and especially to the members of the Hamilton community who it serves. The rules for personal computer loans are clear, easily understood and available to the public.
5. Accountability and Compliance
5.1 Accountability Framework
This policy has been approved by the Senior Leadership Team.
5.2 Compliance
The Chief Financial Officer is authorized to ensure that information within this policy is applied.
6. Rules
The financed amount must not exceed $3,500 per employee per purchase and must be repaid, through payroll deduction, within a maximum 24- month period from the purchase date. The employee cannot have more than two computer purchase loans outstanding at the same time.
Purchases must involve new personal computer equipment only. Second- hand or private purchases will not be recognized as valid purchases for this program.
Total loan proceeds will equal the purchase price of the computer equipment less a down payment of 10% of the computer equipment purchase price or $200 whichever is greater. For example: Total purchase price is $1,500, deposit is $200; or total purchase price is $3,500, deposit is $350.
Only the purchase of personal computer equipment is eligible. Computer software, when purchased with hardware, such as Microsoft Windows, Microsoft Office or any bundled software, virus protection software and PC utilities software that are provided with the PC package, are also eligible. Supplies such as CDs, DVDs, paper etc., are ineligible. Warranty plans such as Applecare are also ineligible.
A computer purchase loan is considered by Canada Revenue Agency as an interest-free loan and therefore is a taxable benefit to an employee.
If an employee who has a computer purchase loan leaves the college, any amount outstanding on the loan is due and payable in full by the employee's last day of employment.
7. Policy Revision Date
7.1 Revision Date
November 2024
7.2 Responsibility
The Chief Financial Officer is responsible for reviewing this policy every five years or earlier when required.
8. Attachments
- Appendix A – Personal Acquisition of Computer Equipment Procedures
- Appendix B – Promissory Note (PDF)
9. Specific Links
Appendix A - Personal Acquisition of Computer Equipment Procedures
1. Employee Responsibilities
Employees have two options for acquiring personal computer equipment:
- Purchase the computer equipment and pay the vendor in full, or
- Obtain a quote or an invoice from the vendor and request an advance to purchase the computer equipment.
1.1 Option 1
The employee must complete the Promissory Note (see Appendix B) and submit it to Payroll Services along with the original itemized receipt from the computer vendor. This form is also included in the “Computer Purchase Program” package which can be found on MyMohawk (Human Resources – Welcome To HR – Quicklinks - Payroll Services Website).
Payroll Services will verify the employee’s eligibility for the program and verify the provided documentation. Once the application is approved, Payroll Services will deposit the loan amount, less 10% down payment or $200 whichever is greater, in the employee’s bank account on the next available pay date.
1.2 Option 2
The employee obtains a quote or an invoice from the vendor showing the total cost of the computer equipment.
The employee must complete the Promissory Note (see Appendix B) and submit it to Payroll Services along with the quote or original invoice from the computer vendor.
Payroll Services will verify the employee’s eligibility for the program and verify the provided documentation. Once the application is approved, Payroll Services will deposit the loan amount, less 10% down payment (or $200 whichever is greater), in the employee’s bank account on the next available pay date.
The employee must proceed to purchase the equipment as per the quote or invoice and submit an original itemized receipt to Payroll Services within 10 working days of receiving the funds.
If the submitted receipt varies from the quote or invoice previously provided by the employee, the difference will be adjusted on the first available pay. The employee’s computer purchase deductions will be increased or decreased accordingly, to reflect the final cost of the computer equipment, however, no more than $3,500 will be advanced.
2. Responsibilities of the Program Administrator (Payroll Services)
The Program Administrator (Payroll Services) is responsible for general administration of the Personal Acquisition of the Computer Equipment program including the following:
- Verifying employee’s eligibility for the loan(s);
- Checking for the completeness of the loan’s documentation;
- Approving application for the loan;
- Processing “Promissory Notes” for new loans;
- Calculating payroll deductions for the loans repayments;
- Calculating and applying taxable benefits associated with the loans;
- Clarifying program guidelines to employees;
- Reconciliation of Computer Loans account.