Company Vehicle : Do my employees buy gas or do I? | TigerDroppings.com

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lsufanintexas
LSU Fan
Member since Sep 2006
3539 posts

Company Vehicle : Do my employees buy gas or do I?


I am going to start giving company owned vehicles to certain employees to keep at home and drive to and from worksites. They may occassionally use them for personal errands.

Do my employees pay for gas and deduct on their personal taxes or do we pay for gas by having them submit expense reports?










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Lefty Diego
West of the Pecos
Member since Aug 2009
366 posts

re: Company Vehicle : Do my employees buy gas or do I?


I have never heard of having the employee pay for fuel in company issued vehicles. Our company vehicles have a fuel card issued with them and the company picks up all expenses related to the vehicle. The vehicle is used for company business only. You will need to check the IRS rules on vehicles and how they are used. They can be considered compensation depending on use. Also, insurance coverage, non employee passengers etc. Im sure someone with more knowledge will chime in soon.





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lsufanintexas
LSU Fan
Member since Sep 2006
3539 posts

re: Company Vehicle : Do my employees buy gas or do I?


That's what I thought.

Thanks






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lsufanintexas
LSU Fan
Member since Sep 2006
3539 posts

re: Company Vehicle : Do my employees buy gas or do I?


but what about commute costs to and from jobs? For instance one of my guys lives an hour away and that is a lot of gas.







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buddhavista
Member since Jul 2012
3543 posts

re: Company Vehicle : Do my employees buy gas or do I?


we had company cars, and they eliminated them and instead give us a stipend for vehicles. I think everyone is happier with that arrangement.





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mytigger
USA Fan
Member since Jan 2008
12248 posts

re: Company Vehicle : Do my employees buy gas or do I?


quote:

but what about commute costs to and from jobs?


you pay for it. all company cars come with a gas card. capeche'?

if you don't want to buy his gas why are you giving him a company car. you sound cheap.






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diat150
Tulane Fan
OPELOUSAS
Member since Jun 2005
18863 posts

re: Company Vehicle : Do my employees buy gas or do I?


quote:

but what about commute costs to and from jobs? For instance one of my guys lives an hour away and that is a lot of gas.


what about it? thats what giving workers company vehicles is about.

If you dont want to deal with it give them an allowance. you dont have to deal with maintenance like that.

btw, are your workers just driving to your office or do they drive to customer sites? do you charge the customer a rate per mile?



This post was edited on 1/15 at 8:56 pm


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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
32085 posts

re: Company Vehicle : Do my employees buy gas or do I?


quote:

if you don't want to buy his gas why are you giving him a company car. you sound cheap.


and you sound like a douche.

OP- You should obviously pay for all gas that is being used for company activities but no way should you be paying for his hour long drive to get to work






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tigeryat
LSU Fan
God's Country
Member since Oct 2005
2544 posts

re: Company Vehicle : Do my employees buy gas or do I?


Personal use of company vehicles, including commuting, is included on the employee's W-2 as compensation.





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ATL TGR
LSU Fan
Houston
Member since Apr 2008
2878 posts

re: Company Vehicle : Do my employees buy gas or do I?


I would do a vehicle stipend. Better all around.a and easier for you





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jonboy
LSU Fan
Member since Sep 2003
2811 posts
 Online 

re: Company Vehicle : Do my employees buy gas or do I?


There is a "personal use" tax associated with company vehicles. I'm not sure how it's calculated but mine was $700 this year.






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tigeraddict
LSU Fan
Baton Rouge
Member since Mar 2007
4723 posts

re: Company Vehicle : Do my employees buy gas or do I?


You may even want to go a different route. The company i work for gives a monthly vehicle allowance ($500 in my case) and a fuel card. I end up getting a "rental income" form at the end of the year for the vehicle.

The way it was explained by my boss, the rental of the vehicle is taking as an over head cost and goes against his profit and what is taxed. But, if he were to purchase the vehicle and then let me use it, it is considered an asset and he is taxed on profit of the company before he buys the vehicles.

So, for example he can not write off the $20k purchase and is taxed on that money as profit. but doing the vehicle allowance method he can write off the costs then pas taxes on the after effect,






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Blakely Bimbo
Alabama Fan
Member since Dec 2010
1078 posts

re: Company Vehicle : Do my employees buy gas or do I?


My husband drives a company vehicle. He has a fuel card.

He has to keep very good written records. The company places a lease value on the car which also includes all gasoline, repairs, insurance etc. The lease value is added to income as a benefit and FICA and Medicare tax is deducted up to the total limit on salary deductions.

When we file taxes, we file Form 2106 to deduct the business portion of the miles driven. This deduction is subject to the IIRC, 2% exclusion and taken on Schedule A.

Records have to be written and there has to be explicit company policy about personal usage. Husband keeps a written diary in his car to separate personal from business usage.

You really need to have a tax professional set this up for you. Those employees who pay to have their taxes prepared will have to pay an additional fee for the 2106 if they do not already file this form for other business expenses.






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bubbz
Baylor Fan
Team Boxtard
Member since Mar 2006
17948 posts

re: Company Vehicle : Do my employees buy gas or do I?


My wife gets a vehicle allowance due to her job. The allowance barely covers her car pmt and insurance. The company requires her to carry the highest insurance coverages possible.

She does not have a gas card. She keeps track of mileage and maintenance on the vehicle for tax purposes at the end of the year.






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PlanoPrivateer
LSU Fan
Frisco, TX
Member since Jan 2004
1330 posts

re: Company Vehicle : Do my employees buy gas or do I?


My employer reimburses me for all gas for my company car except when I am driving it on vacation. I pay with a credit card and send the receipt in with my weekly expense claim form. At the end of each quarter I have to submit a form that tells how many miles for that quarter were personal miles and how many were business miles. Based on the % of personal miles to the total and some valuation of the car, they say I received a benefit of x number of dollars. I am taxed on that amount. I think of it as something like a bonus where I am taxed on the amount of the bonus.





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Geaux Smoke
LSU Fan
Aspen, California
Member since Aug 2010
1977 posts

re: Company Vehicle : Do my employees buy gas or do I?


quote:

I am going to start giving company owned vehicles to certain employees to keep at home and drive to and from worksites

you should have this factored in job overhead already. correct?
as other people mentioned, all of our company trucks come w/ a gas card and all vehicle expenses are covered by the company (you)






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LSUTOM07
LSU Fan
Baton Rouge
Member since Dec 2011
481 posts

re: Company Vehicle : Do my employees buy gas or do I?


As another person said, I would look into a vehicle stipend from 500-600 dollars. The company that I worked for that did this made it mandatory that the employee have a pickup truck, it couldn't be older than 3 years or 150,000 miles, and they had to be insured for outrageous insurance coverage. I forget the exact coverage but it was way higher that what most people have.

Gas was paid for but you were only given 30 miles from home to work one way. (60 miles total a day commute) Also mileage logs had to be kept. I know employees would have to pay for gas that was used outside of work. I don't know how exactly this was kept up with. I never got the stipend.



This post was edited on 1/16 at 2:10 pm


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