Calculate The Personal Use
Of The Company Auto With The Employee Auto Compensation Analyzer - An
Employee Auto Fringe Benefit Calculator: Quickly and easily determine how much should
go on an employee's W-2 for personal use of the company car. This program also
computes the lease inclusion amount.
This program is
used by accounting firms, private and publicly owned business, colleges & local
After December 31, you will probably need to make a
Social Security and Medicare Tax gross up.
Bad Things That Can Happen If This Computation Is Not Made
IRS Auditor Question: Show me how you computed the
personal use fringe benefit for each vehicle. - This
is a frequent business audit question! If the agent is looking at
executive compensation, the agent will probably use the IRS's "Executive
Compensation - Fringe Benefits Audit Techniques Guide." Page 4 of that
guide specifically discusses personal use of a car or vehicle. Reports
generated by the Employee Auto Compensation Analyzer were able to successfully
defuse this issue.
If personal use of a company vehicle is not included
in on W-2s, and the IRS finds this:
Employees will have to amend old tax returns, and
pay tax that they didn't think that they owed. This is not good for employee
Employers can be subject the §6721 penalty for
failure to file a correct information return for each employee with personal use
of a company vehicle.
"At year end we have to calculate personal use of
the auto's before completing W-2s, and this program is used by everyone in the
office. It saves time and is fast. We have been using this program
for years. My employees remind me to reorder every year. Thank you for a
Martha Lindblom, EA, Richbourg & Associates, PC, Tyler, TX
"Fast and convenient and very accurate."
October, 2006 Survey
"Quick and easy to get calculations."
October, 2006 Survey
This computation has several descriptions, including auto fringe, auto
fringe benefit, personal use of company vehicle.
In the "good old
days" the personal use of a business vehicle wasn't an issue. Back then, the employer looked the other way. The
employer got a deduction for the car. The employee got a "tax free" fringe for
personal use of the company car. Of course, that tax free fringe never was supposed to be
tax free at all.
Now Form 4562 has a specific
section where vehicle issues need to be disclosed. It is pretty clear on that form, if the
personal use of the car is not zero, the employer will have to include some amount on the W-2(s) for personal use of the vehicle(s). Failure to do that could result in penalties for the employer, additional tax
(when it is least expected) for the employee, possible preparer penalties and possible
The DTS Employee Auto Compensation Analyzer saves your time
and reduces your frustration dealing with these calculations. The program will lead you
through the qualification tests and make the calculations. The program helps you to
quickly arrive at the lowest allowable fringe benefit for personal use of
This program also computes
the auto inclusion or auto lease inclusion (vehicle inclusion or vehicle
lease inclusion) amounts.
Since both the employee and the IRS might be curious how this
calculation is made, the program generates excellent reports.
Report personal use of company owned auto in
W-2, Box 1. It may also be optionally reported in W-2, Box 14.
If you want to take a FREE no - risk look at this program,
simply download the free demo (4,326kb).
Go to the Features page.
View Sample Reports
Manual In Adobe's Acrobat (.pdf) Format (533 KB)
Watch a YouTube example.
| IRS Publication 15B |
Other IRS Sources |
cents-per-mile, cents - per -
mile, annual lease value table, commuting rule, commuting, witr.com, auto inclusion,
automobile inclusion, vehicle inclusion, car inclusion, payroll, W-2, W - 2, w-2, w - 2,
fringe benefits, working condition fringes, employee, employees, employer, company cars,
company automobile, personal use of company car, personal use of company automobiles,
personal use of company vehicles, personal use of employers cars, personal use of
employers automobiles, personal use of employers vehicles, personal use of employer's car,
personal use of employer's automobiles, personal use of employer's vehicles, 1.61-21, 1.61
- 21, auto fringe benefits, automobile fringe benefits, vehicle fringe benefits, fringe
benefit for automobiles, fringe benefit for cars, fringe benefit for vehicles, employes,
comute, comuting, comutting