Personal Use of Corporate Automobile

Personal Use of Corporate Automobile

Download your 2024 Personal Use of Auto Information Sheet. 

Based on current tax laws, an employee’s personal use of a corporate provided vehicle (PUA) is considered to be a taxable fringe benefit. The following summarizes these rules:

1. A corporation is required to treat the personal use of an employer provided vehicle as taxable compensation to the employee, subject to payroll taxes and withholding.
2. You are required to keep adequate records detailing your business use of the vehicle versus your personal use. For determining personal use of auto compensation, we have elected to use a twelve-month period ending November 30th of each year. Your personal use of auto compensation will be based upon activity from December 1, 2023 to November 30, 2024. Please submit to us via email (inbox@reasontax.com) or fax (858-483-7679).
3. The amount of compensation for the personal use of your vehicle will be determined in accordance with IRS formula and the related IRS fair value lease table.
4. The amount of compensation calculated for the personal use of your vehicle will be included in 2024 form W-2. Based on the amount of compensation included in your W-2 you are required to withhold Social Security, Medicare, and State Disability Insurance.  However, we will not withhold any Federal or California income tax on the amount of this compensation.
5. The Federal and State employer payroll tax deposits for the additional compensation will be calculated once we receive the information requested.  Most payroll tax deposits will be remitted to the tax authorities by December 31, 2024.

If you use a payroll service, please print the pdf at the link above and provide the information to your payroll provider.

PLEASE FILL OUT AND RETURN YOUR PUA FORM BEFORE DECEMBER 15, 2024.

If you have any questions, feel free to call the office at 858-483-7500.