- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Company Vehicle : Do my employees buy gas or do I?
Posted on 1/15/13 at 7:36 pm
Posted on 1/15/13 at 7:36 pm
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?
Do my employees pay for gas and deduct on their personal taxes or do we pay for gas by having them submit expense reports?
7
Posted on 1/15/13 at 7:51 pm to lsufanintexas
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.
Posted on 1/15/13 at 8:01 pm to Lefty Diego
That's what I thought.
Thanks
Thanks
Posted on 1/15/13 at 8:10 pm to lsufanintexas
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.
Posted on 1/15/13 at 8:35 pm to lsufanintexas
we had company cars, and they eliminated them and instead give us a stipend for vehicles. I think everyone is happier with that arrangement.
Posted on 1/15/13 at 8:53 pm to lsufanintexas
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.
Posted on 1/15/13 at 8:54 pm to lsufanintexas
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 1/15/13 at 8:56 pm
Posted on 1/15/13 at 9:29 pm to mytigger
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
Posted on 1/15/13 at 10:00 pm to lsufanintexas
Personal use of company vehicles, including commuting, is included on the employee's W-2 as compensation.
Posted on 1/15/13 at 10:06 pm to tigeryat
I would do a vehicle stipend. Better all around.a and easier for you
Posted on 1/16/13 at 7:52 am to Lefty Diego
There is a "personal use" tax associated with company vehicles. I'm not sure how it's calculated but mine was $700 this year.
Posted on 1/16/13 at 10:30 am to lsufanintexas
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,
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,
Posted on 1/16/13 at 11:50 am to lsufanintexas
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.
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.
Posted on 1/16/13 at 11:56 am to Blakely Bimbo
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.
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.
Posted on 1/16/13 at 12:24 pm to lsufanintexas
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.
Posted on 1/16/13 at 1:44 pm to lsufanintexas
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)
Posted on 1/16/13 at 2:06 pm to lsufanintexas
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.
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 1/16/13 at 2:10 pm
Page 1 of 1
Back to top
Follow TigerDroppings for LSU Football News