Does your business provide vehicles for employees to use? Business use of an employer-provided vehicle is generally excluded from an employee’s income, but personal use, such as commuting or running personal errands, is generally taxable. Employers must determine the value of personal use using an appropriate valuation method (such as cents-per-mile, commuting valuation or automobile lease valuation), include the taxable amount in employees’ wages and meet applicable withholding and reporting requirements. Keep accurate mileage records to support proper tax treatment. The details can be complex, especially if vehicles are shared by multiple employees. We’re here if you need guidance.
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