| Specifics
|
OSC will report
the value of personal use of a State provided vehicle for the period
November 1, 1999, through October 31, 2000, as income on 2000 W-2's.
Therefore, the taxable amounts for 2000 should be reported as soon as
possible, but no later than Institution Period 18-Lag and 19-Current and
Administration Period 18-Lag and 19-Current.
Since the period covered for
determination of the taxable amount ends on October 31, 2000, 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.
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| Determining
the Value
|
The rules for
determining the taxable value are contained in Bulletin P-750 issued
December 1, 1992. The following rules were in effect for the reporting
period.
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 2000 if
the fair market value exceeds $15,400.
The rate per mile, if gasoline is not supplied or reimbursed, is 27 cents
per mile. If gasoline is supplied or reimbursed by the employer, the rate is
32.5 cents per mile.
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 1999 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, 1996
(4 full years) may recompute the annual lease value for this reporting
period.
b. Officers newly assigned a vehicle or who receive a replacement
vehicle may choose either the (Annual Lease Value) 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. New York State will not withhold federal income taxes. However,
state, local and social security/medicare taxes must be withheld. The amount
is not considered salary for the purposes of computing retirement benefits.
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| Direct
Input to PaySR
|
Agencies may enter the taxable value
into PaySR on the Time Entry panel or report the transaction on the
Miscellaneous Payments File. Agencies should enter this value for both
active and inactive employees.
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.
For active employees, the taxable amount will be added to the biweekly
gross prior to the calculation of Social/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.
While OSC can not withhold
taxes for inactive employees, OSC will include the taxable value on
the employee’s W-2. |
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