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Employer Provided Vehicles Policy

West Virginia University Policy
Division of Administration and Finance

WVU-CO-8


EMPLOYER PROVIDED VEHICLES POLICY

PURPOSE

The purpose of this policy is to inform University employees who operate employer provided vehicles that they will be taxed only on the personal use of such vehicles and will not be eligible to receive expense reimbursement for the business use of such vehicles. Also, if employees directly charge gasoline to the University, they will have the value of such gasoline included within their W-2 only to the extent of personal use.

SCOPE

This policy applies to all University employees who operate employer provided vehicles.

POLICY

Employees who operate employer provided vehicles will be taxed only on the personal use of such vehicles. In addition, employees who operate these vehicles are not eligible to receive expense reimbursement for the business use of such vehicles.

Employees who directly charge gasoline to the University, while operating an employer provided vehicle, will have the value of such gasoline included within their Form W-2 only to the extent of personal use.

West Virginia University uses the lease-valuation method to value the use of the employer provided vehicles. Under this method, the value of the personal use miles (taxable fringe benefit) is determined by multiplying the percentage of the personal miles driven by the appropriate value specified in the Annual Lease Value Table found in Treasury Regulation 1.61-21(d)(2)(iii).

The value of the personal miles (taxable fringe benefit) and the value of the gasoline charged to the University for personal use will be reported on the employee’s Form W-2.

PROCEDURE

Procedure development rests with the Controller’s Office – Tax Accounting in cooperation with Travel Management.

RESPONSIBILITY FOR IMPLEMENTATION

The responsibility for implementation of this policy rests with the Controller’s Office – Tax Accounting in cooperation with Travel Management. The Controller’s Office, at 293-4002 or P.O. Box 6001, is available to answer questions or provide additional information regarding this policy.

RESPONSIBILITY FOR INTERPRETATION

The responsibility for interpretation of this policy rests with the Controller, West Virginia University.

Effective Date: September 10, 1998
Approved By: Scott C. Kelley, Vice President