Personal Use of Company Auto

According to IRS regulations, the personal usage of company cars by employees must be treated as taxable compensation income (and is subject to normal payroll taxes). In valuing this compensation, the general rule is the employee’s income is equal to what it would cost in a regular transaction to lease a comparable vehicle for the time used for personal purposes.

If you would like for us to prepare this calculation for the dates January 1, 2024 through December 31, 2024, please sign this letter and fill out the attached form for each employee who had personal use of an automobile owned by the business. Fax the completed forms to the attention of Katie Gargus at (256) 585-6449 or e-mail it as soon as possible to kgargus@bmss.com. In order for the calculations to be completed timely, all information must be returned no later than Friday, December 13th, 2024.
If you have any questions, please give us a call at (256) 547-2588.