Appendix A
Morningside College
VEHICLE USE POLICY
Business and Commuting Use Only
The following policy has been established by MORNINGSIDE COLLEGE to regulate the use of College-provided vehicles by the employees to whom they have been assigned.
I. The vehicles have been assigned to an employee or employees to be used in the performance of their duties as an employee. Use by an employee will be restricted to such use except for commuting to and from work or
de minus personal use (i.e. stop for a personal errand between a business delivery and the employee’s home).
II. The employee will be allowed to commute to and from work only if there is a non-compensatory business reason. Non-compensatory business reasons will include the following:
a. Since the College does not have adequate facilities to protect its vehicles from the weather, vandalism, theft, it may be necessary to require the employee using the vehicle to garage the vehicle at his or her personal residence. If so required, the vehicle shall be stored in a garage or carport type area, if available, at all times the vehicle is at the employee’s residence during non-working hours.
b. The vehicles used by the employees may be furnished with tools, etc. needed by the employee in the performance of his duties. Those employees may also be “on call” or report directly to the job site. Under these circumstances, the employee will be required to commute in the College-provided vehicle to promote efficiency.
III. Certain information is required to be reported to the Internal Revenue Service in regards to employer-provided vehicles. The employee will be required to record and report this information to his or her employer within one month on or about November 1 of each year. The following information is required:
a. The total number of miles driven during the year.
b. The percentage of personal use claimed.
c. Whether the vehicle was used for commuting and, if so, the distance normally commuted.
d. Whether the vehicle was available for personal use in off duty hours.
e. Whether another vehicle was available for personal use.
Morningside College
Vehicle Use Policy
Page Two
In addition, a signed statement from each employee assigned a vehicle will be required attesting that he or she has answered the above questions correctly and has followed the College’s vehicle use policy.
IV. The commuting use of the vehicle is required to be valued at $3 per day and is to be treated as additional compensation.
As such, the value will be reported as wages on your W-2 at year-end. It is also subject to FICA tax, but the College elects to defer withholding until the end of the calendar year.
V. MORNINGSIDE COLLEGE is adopting this policy in order to comply with the record keeping requirements of the law. By adoption of this plan, the employees subject to its provisions will not be required to maintain a record of the usage of the vehicle. However, if an employee does not follow the above provisions, he or she will be required to maintain adequate records of the usage of the vehicle and submit those records on a monthly basis.
VI. The above policy does not apply to individuals who use the assigned vehicle for business and personal use and to the officers of MORNINGSIDE COLLEGE (President and Vice Presidents). These individuals will be required to maintain adequate records to substantiate their business usage of that vehicle.
VII. This policy is in effect for all tax years beginning after January 1, 1985, until amended or rescinded.
11/14/17