2200 Research Boulevard, Suite 540
Rockville, Maryland 20850
301-340-1550 (fax) 301-340-0505
Enclosed please find a worksheet to help you compute the additional compensation to include on W-2s for the personal use of company automobiles. Along with the worksheet is the annual lease value table published by the Internal Revenue Service. The most common method of valuing the benefit uses this table (Safe Harbor Method). Please use this worksheet and if you have any questions contact our office. Before you complete the computation of additional compensation, please have each employee complete the Employee’s Statement of Corporate Auto Usage.
Also included is the 2018 Required Notice Involving Auto Usage that each employee provided with a company vehicle must sign for the employer to withhold only FICA tax on the income from the personal use of the company automobiles. Please distribute to the appropriate employees and request a signed copy in return as evidence of receipt.
A reminder, the federal government has imposed an additional 0.90% Medicare tax on all wages in excess of $200,000. We have incorporated this into our worksheet. If you have questions or comments, please contact us.
Douglas P. Arkin, CPA
Terrance P. Leary, CPA, MST
Arkin & Company, Chartered