FINANCIAL & ADMINISTRATIVE (412)
COURTESY CARS – THE WHEEL CLUB
Courtesy cars are provided by various car dealerships and donors for Kansas Athletics employees, at the discretion of the Director of Athletics. Staff members are permitted to use the cars for both business and personal use.
The Wheel Club is of great benefit to Kansas Athletics in terms of cost-savings and convenience. It should be understood that the success of this program is dependent upon the personal relationship established between the Division of Athletics’ designated coach or staff member and the respective car dealer or donor. Additionally, it is vitally important that all personnel afforded this privilege be cognizant of their responsibility to maintain their assigned automobile in proper condition according to the dealer’s or manufacturer’s requirements.
Failure to comply with all aspects of the Courtesy Car Program and established procedures may result in the loss of courtesy car privileges.
The Wheel Club is under the supervision of the Director of Athletics and coordinated by the Assistant Athletic Director/Traditions, who maintains an on-going relationship with current car dealers and donors and continues to recruit additional courtesy car sponsors as needed.
A courtesy car agreement is executed by the Assistant Athletic Director/Traditions with each dealer or donor supplying cars for Kansas Athletics use.
The Director of Athletics determines the specific allocation of courtesy cars. Courtesy cars are generally provided to Head Coaches, as well as to certain administrative staff members.
The vehicle each staff member is assigned may only be driven by that staff member or his/her spouse. Under no circumstances should the staff member’s children or student-athletes be permitted to drive the vehicle (use of the vehicle by student-athletes is a NCAA violation and will not be allowed). The only exception to this restriction is when injury and/or death is imminent and the vehicle must be operated by others in an emergency. The staff member will be wholly responsible for any damages that occur to the vehicle in a driving accident where the staff member or spouse not driving.
Personal use of Wheel Club vehicles is limited to the immediate Kansas area. Any trip that exceeds 500 miles (round-trip) requires prior approval of the Director of Athletics. Annual mileage should not exceed 15,000 miles per calendar year.
The athletics department is not responsible for towing charges, jump-starting or other similar expenses. The employee assigned the use of the courtesy vehicle shall pay all maintenance and upkeep charges.
Do not switch license tags under any circumstances. Only the tag registered for your vehicle should be displayed. If your car is not “tagged” by the dealer, make any changes through the Athletics Business Office.
If dealer provides a certificate of origin with instruction to obtain title and tags, please bring the certificate immediately to the Athletics Business Office.
Insurance & Registration
Kansas Athletics pays insurance and registration costs for the staff member and spouse (only) for the allocated courtesy car. Any damages, including the expense of any insurance deductibles up to $1,000, incurred to the automobile shall be paid for by the staff member. In case of an accident, fill out the Accident Report Sheet that should be in each car and contact your dealer. In addition, you must immediately notify the Wheel Club Director and/or the business office. Follow normal protocol of exchanging insurance information and contacting the police if warranted.
Fringe Benefit Reporting
Participants have three options available to determine the taxable income from use of the courtesy car.
- Claim 100 percent personal use of vehicle.
- Report personal and business miles driven each month by turning in a monthly vehicle log to the Athletics Business Office. Logs are due in the business office by the 10th of each month. If logs are not turned in, income will be calculated at 100% for that month.
- Report personal and business miles driven each month based on the number of business miles driven and reported on travel expense reports. Copies of the reports are to be turned into the business office to substantiate the business mile percentage by the 10th of each month. If reports are not turned in, income will be calculated at 100% for that month.
IRS regulations require the substantiation of business miles in order to report less than 100% as taxable income. The participant is required to maintain this information and could be liable for additional taxes, interest and penalties if the records do not exist in case of an IRS examination. Kansas Athletics requires this information to substantiate the reduction of income reported for the business use of the vehicle.
The business office will use the information furnished to calculate the tax on the fringe benefit on a monthly basis. It is imperative that information be furnished to the business office in a timely fashion.
IRS regulations define taxable fringe benefits to include an employee’s use of an employer-provided automobile (i.e. courtesy car). The annual lease value of the courtesy car is included on the recipient’s W-2 form. The dealer providing the car to Kansas Athletics determines the fair market value of that car. The annual lease rate which includes rental, maintenance and possibly insurance coverage costs, is then determined. The employee’s W-2 shows the annual lease value less the amount claimed as a business deduction (i.e. the percentage of use as related to business mileage).
The University’s reporting period is from November 1 to October 31 of each year. Income Tax Withholding is deducted for the fringe benefit amount of the courtesy car. Each employee needs to review his/her projected yearly taxable income and withholding situation, so as not to be subject to underpayment of estimated income tax. Withholding of federal, state and FICA taxes is done each pay period on lease value and personal use of the vehicle. November value and use amount is taxed in January.
The courtesy car recipient must maintain reasonable records which differentiate between personal and business mileage. All official business-related mileage is reimbursable through the Athletic Business Office at a rate set by the IRS. Commuting mileage is not a reimbursable expense. If a staff member uses a personal car for a trip, even though he/she has a courtesy car, he/she will only be reimbursed at the lower IRS set rate.
Each driver must maintain complete business travel records which include number of miles, date, place and business purpose.
Business mileage is compiled by the Athletic Business Office and submitted to the University and Kansas Athletics Payroll Office for tax purposes.
Each staff member allocated a courtesy car is responsible for complying with all conditions set forth by the dealership providing the vehicle. In general, it is the responsibility of the recipient of a courtesy car to:
1. Keep the car clean and neat at all times. Smoking is not allowed in any Wheel Club car.
2. Maintain an ongoing relationship with the dealer, contacting the car donor at least four (4) times a year. Keep the dealer informed about mileage and vehicle upkeep.
3. Ensure that the car is serviced regularly to the manufacturer’s specifications at the dealer’s service department, if possible. Maintenance records should be stored in the car’s glove compartment.
4. Return the car promptly to the dealer at the agreed upon time, completion of mileage allowance or upon separation from Kansas Athletics.
5. Report any accidents involving the car to the dealer, regardless of the extent of the damages.
6. Be responsible for all traffic and parking violations.
7. Return the car in good, resalable condition.
8. Keep a valid driver’s license (both employee and spouse). Staff members provided a courtesy car must provide a copy of their driver’s license and a copy of their spouse’s license to the Director of Business Operations. Random motor vehicle checks will be conducted annually for insurance purposes.
9. Secure all appropriate University parking permits and vehicle registration.
10.Contact the Assistant Director of Athletics/Traditions or the Director of Business Operations prior to exchanging your vehicle to go over the turn-in checklist. Failure to so may result in you being responsible for any additional dealer claims. A Vehicle Information Sheet should be provided by the dealer and returned or faxed to the Business office with the new vehicle’s information. Remember to switch your Kansas Athletics Insurance card and Accident Report Sheet to your new car at this time.
Although individual dealership responsibilities are negotiable, dealers participating in the Courtesy Car Program are generally expected to:
1. Provide the assigned driver a passenger car of the dealer’s choice suitable for recruiting, scouting and conducting staff business. The vehicle should not be more than 2 model years old nor have more than 10,000 miles when received. Although the make and model of the vehicle will differ between dealers the value of the vehicle must be at least $20,000 and should be a mid to full size car and have luxury equipment.
2. Replace the car before it reaches 30,000 miles.
3. Register the vehicle and furnish an automobile tag.
4. Instruct the recipient regarding the service operation of the vehicle, including service checks and where the checks are to be made.
5. Check the condition of the car being returned before an exchange is made and furnish the driver a copy of any repairs required for which the driver is considered liable.
Each dealer will be given priority points for its vehicle. Each vehicle will be assigned points according to a scale related to the value (MSRP/Retail) of the vehicle. These points are permanent priority points, not bonus points, and are treated as “gift-in-kind.” Tax issues related to this donation are the responsibility of the provider/dealer. Any dealer wishing to provide insurance for its car(s) will receive additional points. The scale will be as follows:
Vehicle Value Annual Credit Priority Points
(MSRP/Retail) for Donation
$20,000 6,000 60
$30,000 7,000 70
$40,000 8,000 80
$50,000 9,000 90
$60,000 10,000 100
20 priority points will be awarded for each additional/multiple cars.
Each dealer qualifies to purchase two men’s basketball tickets per car. If the dealer wishes to purchase additional men’s basketball tickets, he/she may do so according to his/her respective priority point total – not to exceed six tickets per account. Seating allocation will be based on the dealer’s priority point total relative to all Williams Educational Fund donors.
For football, women’s basketball and any other non-sold out venue, dealers will receive two complimentary tickets for the respective sports they select with an option to purchase additional tickets, depending on availability.
• Each dealer will receive a complimentary autographed team basketball (men’s and women’s).
• Schedule permitting, each dealer will be invited to an annual golf outing.