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Interiorscape Forum / Scaper Talk Discussion Forum / Legal and Contracts / charge for company vehicle use
Posted:  11 Mar 2012 08:29  
When getting my taxes done, my accountant did not believe that I have to pay to use the company vehicle. He tried to convince me the charge was for personal use even though personal use is strictly prohibited.
So is this legal? Does anyone else get charged and not be able to use the vehicle at all for personal use?
Posted:  11 Mar 2012 14:09  
can you explain in more detail? are you saying that the company you work for charges you to use there company vehicle to do company work?
Posted:  11 Mar 2012 18:14  
Employers who give company vehicles to employees for use in conducting company business may charge said employees for PERSONAL USE of such vehicles, subject to a clearly-stated company policy on such use.  It may be treated as a fringe benefit to the employee or as an employment expense to the business.  The IRS has many regulations and rules that govern the taxable status of personal use vs. business use, which your tax professional should be able to explain to you.

Here is an interesting article that covers many of the questions people have about this topic:

http://www.automotive-fleet.com/Article/Print ...

In the absence of any signed employer/employee agreement covering this matter, I would doubt that your employer can legally require you to reimburse him for your use of the company vehicle for anything except purely personal use, which MAY include travel to and from the job site at the beginning and end of each work day.  You need to sit down with your boss and ask for an explanation, agreement you may have signed, employee handbook/policy manual you may have received and signed off on when hired, etc. 

Clem
Posted:  11 Mar 2012 21:49  
Alex - yes, I pay for use of the company vehicle for company work. But personal use is not allowed.
Clem - thanks for the link, I will check it out. Unfortunately, the company I work for doesn't look at it as a benefit. I think my coworkers and I would be thrilled at that idea. Here is exactly what's happening...I have 60 bucks automatically deducted from my paycheck monthly for vehicle use. Which is going to various accts throughout the day and then back home. We aren't allowed to stop at the store, bank, etc. The only exception is those of us with kids can drop off/pick up from school - that's it.
Family and friends think it's illegal as do my coworkers.
Posted:  11 Mar 2012 22:34  
if the company is providing a company owned vehicle for exclusively servicing accounts and not personal use it does sound suspect that they would be deducting anything from your pay check. what do they state that the sixty bucks is for? does not sound legit to me
Posted:  12 Mar 2012 00:57  
That's the funny thing...they dance around the subject. They have collected 60 dollars a month for over 2 years now.
Posted:  12 Mar 2012 04:34  
I would make a confidential inquiry of the IRS and your state's tax authority and ask them straight out whether this is legal or not.

My money is on it being illegal to charge an employee for the use of a company vehicle strictly used for the company's business.

And not only is it illegal, it stinks.  I would consider looking for another job if I were you.

Clem
Posted:  03 May 2013 01:35  
Your company is extremely strict about the use of company vehicle
Posted:  03 May 2013 15:58  
The irony of this situation is that the company is the MOST exposed to liability claims when they allow you to use the vehicle for child pick-up/drop-off.  They would be responsible for anything that happens to your children while in the company vehicle.  For that reason alone, we do not allow our staff to use it for child transport, especially while on company time.

Julie
Posted:  03 May 2013 21:59  
I think that a company that charges its employees for the use of company vehicles to do company work is running an unlicensed car rental business.  And oh, they're jerks, too.

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