Agenda - Council - 03/11/2014 - Laserfiche WebLink

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QUICK REFERENCE GUIDE FOR PUBLIC EMPLOYERS employee reimburses this amount to the employer, the amount is included in the employee's wages. This rule may be used if all of the following apply: a) You own or lease the vehicle and provide it to an employee to use in your business, b) For bona fide noncompensatory business reasons, you require the employee to commute in the vehicle, c) You establish a written policy allowing no personal use other than commuting or de minimis personal use (such as a stop for personal errand), d) Your employee does not use the vehicle for personal purposes other than commuting and de minimis personal use, and e) The employee is not a government control employee. A government control employee is either (i) an elected official, or (ii) an employee whose pay is at least Federal Government Executive Level V. Example: An employee takes a city vehicle home in order to avoid exposing it to harm. The vehicle has a city seal on the door and policy prohibits noncommuting personal use. If this is an infrequent occurrence (less than once a month) this may be excludable as a de minimis fringe benefit. If this is a frequent or regular occurrence, the commuting may be valued using the commuting rule. If the vehicle is not a qualified nonpersonal use vehicle as discussed earlier, and the employee drives it home, there is a taxable commuting benefit. To conform to the accountable plan rules, employees using a vehicle for business purposes (regardless of which special valuation rule is used) should keep daily records of business miles by keeping a log showing the date, mileage, destination, business purpose, and personal use (including commuting) mileage. Clothing Provided by the Employer The value of work clothing provided by the employer is not taxable to the employee if: 1) The employee must wear the clothing as a condition of employment, and 2) The clothes are not suitable for everyday wear. It is not enough that the employee wear distinctive clothing; the employer must specifically require the clothing as a working condition. Nor is the test met because the employee does not, in fact, wear the work clothes away from work. The clothing must not be suitable for taking the place of regular clothing. The value and upkeep of work clothes provided to firefighters, health care workers, law enforcement officers or letter carriers is nontaxable to the employee. Similarly, the value of safety shoes or boots, safety glasses, hard hats and work gloves provided and maintained by the employer are not taxable. Reimbursements to employees for their purchase of any of these are excludable if the expenditures are substantiated under the accountable plan rules. Clothing Allowances 12