LIST OF DOCUMENTS IN THIS FILE:
1. MEMO
2. MATRIX
3. SUBSTANTIATION
4. AUTO LEASE SALARY DEDUCTION AUTHORIZATION
5. AUTOMOBILE MILEAGE LOG
6. INSTRUCTIONS TO COMPLETE AUTOMOBILE MILEAGE LOG
INTERDEPARTMENTAL CORRESPONDENCE
Kent State University
Kent, Ohio
Treasury & Tax Services
TO:
Kent State University Employees with University or Dealer-provided automobiles
FROM:
Paula DiVencenzo, Tax Manager
SUBJECT:
Recordkeeping for Your University or Dealer-Provided Automobile
DATE:
September 23, 2011
All employees who receive a KSU or dealer-provided automobile must keep a daily log by month
of the business use of their vehicle. In addition, odometer readings must be recorded at the beginning
and the end of each month to determine the business/personal use of the vehicle for the month.
The log must be completed “at or near” the time of business usage of the vehicle for each month
of the year. Completed logs for all employees other than those who work in intercollegiate athletics
must be sent to Treasury & Tax Services, Room 232 Schwartz Center. Intercollegiate athletics employees
will send completed logs to their business office who will then forward them on to Treasury & Tax
Services.
All completed monthly logs are due in the Treasury & Tax Services office by the 10th of the
following month. Timely completion and submission of the log on a monthly basis is essential for
substantiation of the business/personal use of your employer or dealer-provided automobile. Failure to
maintain the log will result in the entire value of your monthly automobile lease being considered
income taxable to you.
In order to assist you in this matter, a copy of a log is attached for your use along with guidelines
for using the form. Also, a business/personal automobile mileage decision matrix is attached for your
use as well as a write-up which explains how KSU will calculate taxable income for personal use of your
vehicle. Please note that business mileage is allowed only to the extent it exceeds your normal
commute.
Thank you for your cooperation with this IRS mandated requirement. If you have questions or
need additional information concerning this matter immediately please call me at extension 28622.
KENT STATE UNIVERSITY
EXAMPLES OF BUSINESS/PERSONAL AUTOMOBILE MILEAGE
AS OF JANUARY 1, 2011
DESCRIPTION OF TRAVEL
TYPE OF TRAVEL
BUSINESS (Note 1) PERSONAL
HOME TO REGULAR JOB LOCATION
Example: You travel from your home to your regular KSU
job location.
X
HOME TO TEMPORARY WORK LOCATION
X
Example: You travel from your home to a short-term assignment at the
Trumbull Campus when you have a regular Kent job location.
Example: You travel from your home to Ohio State University.
Example: You travel to a conference or workshop in Cleveland.
HOME TO A SECOND JOB LOCATION
Example: You have a regular office at Kent and a second job at Stark.
You travel from your home to Stark.
X
REGULAR JOB LOCATION TO HOME
Example: You travel from a regular KSU office to your home.
X
REGULAR JOB LOCATION TO SECOND JOB LOCATION
Example: You travel from a regular KSU office to the Salem Campus.
X
REGULAR JOB LOCATION TO TEMPORARY WORK LOCATION
Example: You travel from a regular KSU office to a short-term
assignment at the Tuscarawas Campus.
Example: You travel from a regular KSU office to a meeting at
Youngstown State University.
X
TRAVEL AROUND CAMPUS
Example: You travel from a regular KSU office in Kent to a
business meeting across campus.
X
TRAVEL ON AN EXTRA DAY
Example: You normally work Monday through Friday, however,
due to a special event, your workload, or a request
from your supervisor, you work on a Saturday.
SECOND JOB LOCATION TO A TEMPORARY WORK LOCATION
Example: You have a regular Kent office and a second
job at Stark. You travel from Stark to a third short-term
assignment at the Trumbull Campus.
X
X
KENT STATE UNIVERSITY
EXAMPLES OF BUSINESS/PERSONAL AUTOMOBILE MILEAGE
AS OF JANUARY 1, 2011 (CONTINUED)
DESCRIPTION OF TRAVEL
TYPE OF TRAVEL
BUSINESS (Note1)
PERSONAL
SECOND JOB LOCATION TO HOME
Example: You have a regular Kent office and a second
job at Stark. You travel from Stark to home.
X
SECOND JOB LOCATION TO REGULAR JOB LOCATION
Example: You have a regular Kent office and a second
job at Stark. You travel from Stark to your Kent office.
X
TEMPORARY WORK LOCATION TO HOME
Example: You travel from a short-term assignment at East Liverpool
to your home.
Example: You travel from Indiana University to your home.
Example: You travel from a conference or workshop to your home.
X
TEMPORARY WORK LOCATION TO REGULAR JOB LOCATION
Example: You travel from a short-term assignment at the Ashtabula
Campus to your regular Kent office.
X
TEMPORARY WORK LOCATION TO SECOND JOB LOCATION
Example: You travel from a short-term assignment at the Stark
Campus to another short-term assignment at the Geauga
Campus when your regular office is in Kent.
X
VACATION TRAVEL WITH NO BUSINESS TRAVEL
Example: You take your yearly family vacation to Cedar Point.
SHOPPING TRIPS, ENTERTAINMENT TRAVEL, FAMILY USE OF
VEHICLE AND/OR OTHER NON-BUSINESS USE
Example: You take a trip to the mall and/or to the movie theater.
Example: Your wife uses the vehicle.
Example: Your son uses the vehicle.
SECOND TRIP TO/FROM REGULAR JOB LOCATION TO/FROM
HOME IN THE SAME DAY
Example: You travel to/from home and to/from your regular KSU
job location for the second time in one day.
X
X
X
NOTE 1: Business mileage is the total miles traveled less the total normal commuting miles.
LEGEND:
HOME: THE PLACE WHERE YOU RESIDE
REGULAR JOB: YOUR PRINCIPAL PLACE OF EMPLOYMENT
TEMPORARY WORK LOCATION: A PLACE WHERE YOUR WORK ASSIGNMENT IS IRREGULAR
OR SHORT-TERM, GENERALLY A MATTER OF DAYS OR WEEKS.
SECOND JOB: A REGULAR SECOND ASSIGNMENT ALONG WITH YOUR REGULAR JOB.
KENT STATE UNIVERSITY
SUBSTANTIATION OF BUSINESS MILEAGE AND
CALCULATION OF TAXABLE INCOME FOR PERSONAL USE OF AN EMPLOYER OR
DEALER- PROVIDED AUTOMOBILE
Your automobile log is a record to substantiate business mileage and to calculate
personal mileage for your employer-provided or dealer-provided automobile. The
substantiated business mileage is excluded from taxation while the personal mileage
must be treated as taxable income. The calculation to determine taxable income for a
tax year is as follows:
Assume your logs for the year display the following information:
END OF YEAR ODOMETER READING
START OF YEAR ODOMETER READING
TOTAL MILES DRIVEN IN THE YEAR
10,500
7,500
3,000
TOTAL BUSINESS MILES FOR THE YEAR
FROM THE MONTHLY LOGS
2,000
TOTAL PERSONAL MILES DRIVEN FOR THE YEAR =
TOTAL MILES DRIVEN IN THE YEAR LESS TOTAL
BUSINESS MILES DRIVEN IN THE YEAR
1,000
PERSONAL MILES PERCENTAGE
1,000
3,000 = 33 1/3%
Using the percentage from above and an IRS provided automobile lease value of
$6,350 the following yearly calculation will be made:
TAXABLE INCOME FOR THE TAX YEAR
FOR PERSONAL USE
$6,350 X 33 1/3% = $2,116
The taxable income for December of the prior tax year and January through
November of the current tax year will be compared to the monthly payroll withholdings
related to the vehicle for the same period. If the taxable income is greater than the
amount withheld from the pay of the employee for the tax year this excess amount will
be added to W-2 taxable income for the current year with no withholding of taxes.
For example:
Assume the taxable income for the twelve months (December
last year and January through November of the current year) was $2,116.
Assume the monthly amount deducted from your pay each of these twelve
months was $100.
The amount of additional taxable income for the year would be:
Taxable income for the twelve months
Amount deducted from your pay for the twelve months
Additional reported compensation ($2,116 – $1,200)
$2,116
$1,200
$916
Timely completion and submission of the log on a monthly basis to the proper
KSU office is essential for substantiation of the business/personal use of your
employer or dealer-provided automobile. Failure to maintain the log will result in the
entire value of your monthly automobile lease being considered income taxable to
you.
KENT STATE UNIVERSITY
AUTO LEASE SALARY DEDUCTION AUTHORIZATION
I authorize Kent State University to deduct from my monthly pay the personal use of my
leased University automobile, a
____________________________________ from ______________________________
(Year, Make, Model)
(Dealer)
____________________________________
(Serial Number)
Payroll deduction will begin with the pay of __________________________.
(Date)
Please deduct from each pay for ________ months using the following formula:
MONTHLY LEASE EXPENSE
PERSONAL RATE FOR LEASE
$__________
____x .25%
DEDUCTION PER PAY
$__________
NAME ____________________________ SOCIAL SECURITY NO. _______________
TITLE _________________________________________________________________
I have received a packet that explains how to properly document business and personal
mileage. I understand that I am responsible for timely submitting an automobile log on
a monthly basis. I acknowledge and agree that the university may charge additional
amounts for personal use and/or take additional tax from my paycheck if I do not
properly report my automobile usage.
SIGNATURE ____________________________________ DATE ____________
RETURN TO WILLIAM HENDRICKS, 234 SCHWARTZ CENTER, FOR PROCESSING OR FAX
TO 2-5434.
PLEASE CALL ME AT EXTENSION 2-8622 IF YOU HAVE ANY QUESTIONS.
Actual mileage logs can be located at: http://www.kent.edu/bas/forms/automobilemileagelog.cfm
KENT STATE UNIVERSITY
DATE
BUSINESS
MILES
AUTOMOBILE MILEAGE LOG FOR THE MONTH OF _______, YEAR ______ NAME: _____________
DESTINATION(S)
BUSINESS PURPOSE(S)
TYPE
EXPENSES:
AMOUNT
EXAMPLE
START OF MONTH ODOMETER READING _________________
END OF MONTH ODOMETER READING __________________
SIGNATURE: ______________________________
TOTAL MILES DRIVEN IN THE MONTH _________________
TOTAL BUSINESS MILES DRIVEN IN THE MONTH ________________
TOTAL PERSONAL MILES DRIVEN IN THE MONTH _______________
Please mail to Bill Hendricks, 234Schwartz Center
by the 10th of each month.
Ph: 2-8622
Fax: 2-5434
DATE: _______________
Automobile Mileage Log
Instructions as of January 1, 2011
The log must be completed at the time of business usage of the vehicle for
each month of the year.
1. Enter the month and year for which the log is being submitted.
2. Enter your name.
3. For each business use of your vehicle, enter:
A. The date for the business use of your vehicle.
B. The business miles driven for the day.
C. The destination for the business use of your automobile for that day.
D. The business reason for incurring business miles for that day.
4. Enter the odometer reading for the start of the month for this reporting period.
5. Enter the odometer reading for the end of the month for this reporting period.
6. Enter the total miles driven in the month - subtract beginning of month
odometer reading from end of month odometer reading. This field will
automatically calculate when completing this form on-line.
7. Enter the total of the business miles driven in the month. This field will
automatically calculate when completing this form on-line.
8. Enter the total personal miles driven in the month - subtract the total business
miles from the total miles driven. This field will automatically calculate
when completing this form on-line.
9. Sign and date the form.
Send the original form by the 10th of each month to:
Treasury, Tax and Risk Management Services
232 Schwartz Center
NOTE: Intercollegiate Athletics employees should send completed logs to their
business office, which will then forward them on to Treasury & Tax Services.