Car, Allowance for Use of Personal Vehicle
Process for Taxation of Non-wage Compensation
Description
An employee is given a set amount each month towards the use of his/her personal vehicle for business use.
This will appear on the employee’s paycheck as:
Employee’s Responsibility:
- The employee has no responsibility to the University.
Note: If the employee wishes to claim any portion of the car allowance as a business expense on his/her tax return, he/she will need to follow the instructions outlined in IRS Publication 463 and Instructions for Form 2106
College or Department’s Responsibility:
- Provide a memo or spreadsheet on a monthly basis to University Payroll, with the following information:
- Employee Name
- Employee ID number
- Amount of payment
University Payroll’s Responsibility:
