Since the period covered for determination of the taxable amount ends on October 31, 1999, your employees should be able to prepare and submit the data so you can meet the deadlines. Your cooperation in meeting these deadlines is appreciated.

1. Special Commuting Rule - Employees whose annual salary is equal to or greater than $110,700 are not permitted to use the Special Commuting Rule.

2. Fixed Rate Per Mile - The Fixed Rate Per Mile Method cannot be used for automobiles first made available for employees’ personal use in 1998 if the fair market value exceeds $15,500.

The rate per mile, if gasoline is not supplied or reimbursed, is 27 cents per mile for miles through 3/31/99 and 25.5 cents per mile effective 4/1/99 and after. If gasoline is supplied or reimbursed by the employer, the rate is 32.5 cents per mile through March 31, 1999 and .31 cents per mile effective April 1, 1999.

State Officers who have a vehicle for unrestricted use (as defined on Page 3 of Bulletin P-750) should be reminded of the following provisions of the rules:

a. Officers who have the same vehicle as they had in 1998 must use the same method to determine the taxable value as they used last year and must use that method for all future reporting periods during which they have the same vehicle. Officers who have had the same vehicle since January 1, 1995 (4 full years) may recompute the annual lease value effective January 1, 1999.

b. Officers newly assigned a vehicle or who receive a replacement vehicle may choose either the ALV method or the Fixed Rate Method for the new vehicle but then must use that method for all future periods during which they have that vehicle. Once the Annual Lease Value has been established it must be used for a four-year period or until the individual no longer has the vehicle.

c. Officers are responsible for maintaining documentation to support the business use of the vehicle. The standard for record keeping is "adequate records or sufficient evidence" to support any business use of their vehicle.

Examples of acceptable substantiation would be account books, diaries, logs receipts, bills, trip sheets or expense forms. Written records made at or near the time the expense was incurred should be maintained to document the time, date, place and purpose of business travel.

A form similar to the sample attached to this Bulletin should be completed and signed by each employee covered by the regulations and retained by the agency.

The taxable value of personal use of an employer provided vehicle is subject to income and Social Security/Medicare taxes and must be reported as income on the W-2. Although New York State will not withhold federal income taxes, state, local and social security/medicare taxes must be withheld. The amount is not considered salary for the purposes of computing retirement benefits.

TIME ENTRY ON-LINE INSTRUCTIONS

1. Access the Time Entry panel by Start - Compensate Employees- Maintain Payroll Data U.S. - Use - Time Entry - Add.

2. Enter the following information in the Dialog Box to select the employee.

a. Department - enter the employee’s agency code

b. EmplID - enter the employee’s social security number

c. Employment Rcd Nbr - enter the employee’s record Number if other than ‘0'

d. Pay Period End Date - leave blank, defaults to the current pay period end date

3. Click OK.

4. On the Time Entry panel enter the following information.

a. Earnings Begin Date - use the beginning date of the current pay period

b. Earnings End Date - use the ending date of the current pay period

c. Earn Code - enter or select the earnings code FRB for Fringe Benefit

d. Amount - enter the taxable value of the personal use of the vehicle

e. Cmts - click on this button if you would like to add comments

1. Type any comments relating to the taxable value of the personal use of the vehicle.

2. Click OK

3. Click the Save button on the tool bar

Agencies reporting this information on the Miscellaneous Payments File should use the same data elements as shown for Time Entry On-Line instructions.

The taxable amount will be added to the biweekly gross prior to the calculation of Social Security/Medicare tax and the tax will be computed on the full amount, unless the employee has paid the maximum tax. This amount will appear on the check and/or direct deposit stub and will be included in the YTD Gross.