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| Click
here to download the Printable PDF Worksheet Adobe Acrobat required to view file. Click here to get Acrobat.  |
| An employer-provided vehicle is a fringe benefit
that may be taxable to an employee depending on the employee's use
and on the restrictions set by the employer. The following situations
involving company provided vehicles are generally tax-free to the
employee:
1) Vehicle is used 100% for business. (Daily commute is not qualified business use.) For vehicles not qualifying for a tax-free situation, the employer must calculate the value of the personal use and include it on the employee's W-2 form. Enclosed please find a two-page worksheet to assist you in the computation of the additional income that must be added to the W-2 income for persons that are provided a taxable, company owned/leased vehicle. A vehicle worksheet should be completed for all company owned/leased autos, sport utility vehicles and small trucks. This worksheet should not be completed for qualified non-personal-use vehicles. A qualified non-personal-use vehicle is any vehicle that is not likely to be used more than minimally for personal purposes because of the way it is designed (I.E. trucks designed to carry cargo with a loaded gross vehicle weight over 14,000 pounds, delivery trucks with seating for the driver only, or for the driver plus a folding jump seat, buses, tractors, etc.). The worksheet should be completed as soon as possible because the information is necessary for withholding, W-2's and December 2005, payroll tax filings. As a reminder, timely notice should be given to employees who drive company owned/leased vehicles that adequate records relating to vehicle usage must be kept to satisfy the substantiation requirement of I.R.S. regulations. Mileage records are not required for vehicles unlikely to be used for personal purposes. Please call us if you have any questions regarding this subject matter. |
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