College athletic departments will now have to foot an additional bill when it comes to paying for top-dollar coaches.
Because of a change in the tax code effective this year, nonprofits will be required to pay a 21 percent excise tax on any compensation given to employees who make more than $1 million; the tax will be limited to an organization's five highest-paid individuals.
University of Kansas chief financial officer Pat Kaufman spoke about the change when discussing the athletic department's proposed budget during a board of directors meeting on Wednesday morning. Kaufman later told The Star that the department is budgeting an additional tax expense around $1 million, which could change depending on how tax advisers interpret KU men's basketball coach Bill Self's salary for next year.