|Bulletin No. 437|
|Subject||Reporting the Taxable Value of Personal Use of Employer- Provided Vehicles for 2003|
|Purpose||To provide instructions for reporting the taxable value of employer-provided vehicles for 2003.|
|Affected Employees||Employees with employer-provided vehicles.|
|Background||OSC will report the value of personal use of an employer-provided vehicle, for the period November 1, 2002 through October 31, 2003, as income on 2003 W-2's. Therefore, the taxable amounts for 2003 should be reported as soon as possible, but no later than Payroll Period 18-Lag and Payroll Period 19-Current for Institution and Payroll Period 19-Lag and Payroll Period 20-Current for Administration.|
|Determining the Value||
The following rules are in effect for
the reporting period:
Annual Lease Value Method (ALV)
Employees who have unrestricted use of a vehicle should use this method. Employees who are prohibited from using a vehicle for personal use cannot use this method. The ALV of a car is determined as follows:
A form similar to the sample (AC 3173) linked to this Bulletin should be completed and signed by each employee covered by the regulations. The form should be retained by the agency.
|Agency Actions||Agencies may enter the taxable value using the earn code FRB into the Payroll System on the Time Entry Pages or through the agency Miscellaneous File. For information regarding submission of Time Entry transactions, see Payroll Bulletin No. 408.|
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.
While OSC cannot withhold taxes for inactive employees, OSC will include the taxable value on the employee's W-2.
The amount is not considered salary for the purposes of computing retirement benefits.
|Check/Advice||The amount will appear on the check and/or direct deposit advice and will be included in the YTD Gross.|
Questions regarding time entry
transactions may be directed to your agency's Payroll Auditor.
Questions regarding adjustments to employee W-2's and taxable value calculation may be directed to the Payroll Deductions mailbox.