A common benefit in many U.S. companies today is the use of a company owned car. However, though a common benefit, an employee’s personal use of such a company owned and provided vehicle is generally a taxable fringe benefit and the taxation regulations can be extremely complex. The IRS provides several different valuation methods that employers can use to determine the value of their employee’s personal use. This two-part white paper discusses the taxation requirements and the different methods to determine taxable wages authorized by the IRS for the personal use of a company car. This week, Part one discusses the general taxation and other requirements when an employee has use of a company car. Next week, Part two discusses calculating the taxable wages using the IRS methods. To request our white papers simply go to our website.
2 thoughts on “This Week’s White Paper-Personal Use of a Company Car Part 1”
How does your company handle company car taxable amounts? Does your payroll or accounting department calculate the taxable amounts?
Are you asking for my own experience or are you asking for my blog followers to comment?