- Tax law is very clear that the personal use of an employer vehicle by an employee is taxable compensation to the employee; and
- CPA firms acknowledge that IRS business/organization tax audits pay particular attention to vehicle expenses and the business/personal use of the vehicles. Employers who take the time to calculate and report personal use of company vehicles as compensation on employee W-2’s are less likely to be heavily reviewed/scrutinized as to their vehicle expense deductions in precise detail (this is not law, but is “real world” experience!)
Auto Use Forms on our Website
AccuPay’s newly updated “personal use of company car” annual forms for 2023 are on our website at www.accupay.com. Simply click on Resources then Forms and you will find our link 2023 Personal Use of Auto Letter.
AccuPay’s 2023 Year-End Guide is also now available. We ask that all AccuPay clients read the document, complete the questionnaire and return it to your Payroll Specialist by December 1, 2023.
AccuPay clients should complete an auto form for every employee who personally used an employer-provided vehicle during the one year reporting period November 1, 2022 – October 31, 2023. These completed forms should be submitted to AccuPay no later than November 22, 2023, which gives us time needed to calculate tax withholdings, tax deposits and to report the correct compensation amounts on employee W-2 forms for 2023.
Call your AccuPay Payroll Specialist at 317-885-7600.
This post has been updated with 2022-2023 dates.