2006-10-28 03:54:06 · 2 answers · asked by csuh116 1 in Business & Finance ➔ Taxes ➔ United States
Assuming you work for a corporation, the benefit of being able to use the car for private use will be computed (along with the benefit of private fuel, if relevant). this will then be added to your W-2 at the end of the year. If your company does not adjust your paycheck each week you will find that your net pay at the end of December is less than you expected. If they will not adjust for the tax bill each pay period, ask them to at least let you know how much the benefit will be so you can budget for it. Remember you may also have to pay FICA taxes. If you don't the benefit will be grossed-up tol account for the tax liability the company is paying on your behalf.
2006-10-28 05:28:02 · answer #1 · answered by skip 6 · 0⤊ 0⤋
Because the company lets you use the car,for company purposes,it should not affect your taxes,or your salary.
2006-10-28 10:58:01 · answer #2 · answered by Squeakers 6 · 0⤊ 3⤋