Bookkeeping News & Tips

Fringe Benefit Valuation Rules for Employer Provided- Vehicles

If an employer provides an employee with a company-owned vehicle, and the employee uses the vehicle foe personal purposes, then the value of that personal use must be included as taxable income on the employee’s W-2. There are several methods allowed by the IRS to value the vehicle rather than using actual costs. Here we will cover the General Valuation Method and the Cents-per-Mile Method. [More]