Wednesday, December 21, 2011
Personal Use of Company Car (PUCC)
Employees of corporations who drive a vehicle to/fr work which is on the books (either the lease payments are deducted or the vehicle is being depreciated) are required to include PUCC in their wages. The minimum for owners, barring a home office, would of course be commuting to/fr the office. Commuting is personal. Owners may only use the lease value method for calculating this amount. Employees may in some cases use a simplified mileage method. It all depends on the value of the car. In all cases, the fringe benefit must be grossed up for FICA taxes. Don't forget this on the final paychecks of 2011.