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RESOLUTION NO. 7493
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RESOLUTION ESTABLISHING POLICY FOR REPORTING TAXABLE INCOME AND
WITHHOLDING FROM EMPLOYEES FOR PERSONAL USE OF CITY PROVIDED
VEHICLE.
WHEREAS, the U. S. Congress has ruled that personal use of an
employer supplied vehicle is a taxable fringe benefit; and
WHEREAS, taxable fringe benefits are subject to personal, FICA
and FUTA taxes.
NOW, THEREFORE, BE IT RESOLVED that:
2. Taxable
subject
3. Taxable
subject
a) The
(1 the
I.
1. Taxable operatin9 value of employer provided vehicles is
to be included on employee's W-2 except if the City is
reimbursed by the employee for this value.
operating value of employer provided vehicle is
to FICA, FUTA or PERA taxes.
operatin9 value of employer provided vehicle is
to income tax withholding.
City may elect to not withhold income taxes on
taxable value of vehicle if:
The City notifies the employee at the time and in
the manner to be prescribed by re9ulation that
the employer is mak1ng the election not to with-
hold; and
II. The City includes the amount of benefits as wages
on the employee's Form W-2 for the year in which
the benefit is received.
III. For 1985, notice must be g1ven in writing by July
1, 1985 or as soon after policy has been adopted.
IV. For years after 1986, notice must be 9iven
annually by January 1 of the applicable year.
4. The City elects to determine the taxable operatin9 value
of an employer prov1ded veh1cle annually on December 31.
Adopted by the Council this 2nd day of July, 1985.
Publish -- July 9, 1985.
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