If you or anyone in your company drives a company-owned vehicle, the personal use of that vehicle is taxable compensation and should be reported on the employee's W-2. The company is required to report the value of the personal use of these vehicles as wages, and social security and Medicare taxes must be withheld.
This value needs to be determined before the end of the year in order to be included in 2007 wage and W-2 reports. There are several ways to calculate the value of personal use and Hancock Askew can perform these calculations for you for 2007. If we have not provided this service to you in the past and you would like for us to, please contact us at 912.234.8243.
