Employees Personal Use of an IU Vehicle


The value of the personal use by an employee of a University vehicle is considered additional taxable wages (i.e., compensation for services). The value of the business use by an employee of a University vehicle is not considered additional taxable wages.

Business vs. Personal Use

Business use of a University vehicle is any use for official University business, see below for example:

Business Use of a Vehicle – Examples

Traveling between the employee’s main or regular place of work and another regular place of work.

Traveling between the employee’s main or regular place of work and a temporary work location.

Traveling between the employee’s home and a temporary work location.

Personal use of a University vehicle is any use that is not for official University business, see below for examples:

Personal Use of a Vehicle – Examples

Using the vehicle to run a personal errand from his/her work location.

Using the vehicle on weekends or days off for other than University business.

Commuting, i.e., traveling between the employee’s home and his/her main or regular place(s) of work.

The University reports as taxable wages the value of the personal use of a University vehicle to the IRS, the state and the employee on Form W-2, Wage and Tax Statement. The University must withhold FICA tax (i.e., 1.45% Medicare tax plus 6.2% OASDI tax, if applicable) on this additional compensation from the employee’s regular pay during the year.

Please see the Personal Use of Vehicle – Handout for more examples and detailed information about this fringe benefit.

 

Motopool's websie https://fleetservices.indiana.edu/

To track your mileage pleas complete the log - Personal Vehicle Mileage Log for 2016-2017.