|Subject:||Procedures for Reporting the Taxable Value of Personal Use of Employer Provided Vehicles for 1998||Bulletin No. 57|
The purpose of this bulletin is to provide instructions for reporting the taxable value of State provided vehicles for 1998.
OSC will report the value of personal use of a State provided vehicle for the period November 1, 1997, through October 31, 1998, as income on 1998 W-2's. Therefore, the taxable amounts for 1998 should be reported as soon as possible, but no later than Institution Period 19-Lag and 20-Current and Administration Period 18-Lag and 19-Current.
Since the period covered for determination of the taxable amount ends on October 31, 1998, your employees should be able to prepare and submit the data to you so that you can meet the deadlines. Your cooperation in meeting these deadlines is appreciated.
DETERMINING THE VALUE OF PERSONAL USE OF A VEHICLE
The rules for determining the taxable value are contained in Bulletin P-750 issued December 1, 1992. The following rules were in effect January 1, 1998.
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:
REPORTING THE VALUE OF PERSONAL USE OF A VEHICLE
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 income taxes, Social Security/Medicare tax must be withheld. The amount is not considered salary for the purposes of computing retirement benefits.
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.
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.
3. Click OK.
4. On the Time Entry panel enter the following information.
Agencies reporting this information on the Miscellaneous Payments File should use the same data elements as shown for Time Entry On-Line instructions.
In processing, 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.
If additions or adjustments must be made for 1998 after the payroll period listed above, contact the PaySR Help Desk at (518) 486-6745 (Press 3).