Topic Thread

Mitigating Risk of Personal Use of Company Vehicles/Equipment

  • 1.  Mitigating Risk of Personal Use of Company Vehicles/Equipment

    Posted 02-07-2019 15:14
    Hello Group,

    Would you mind sharing policies and procedures you have implemented to mitigate against risks associated with authorized and/or unauthorized employee personal use of company vehicles/equipment?

    Any insights or cautions from trial and error, experiences or situations caused from personal use?

    Thank you in advance for your feedback,

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    Jyll Waters CPA, MBA, CGMA, CCIFP
    Chief Financial Officer
    Vancon, Inc.
    Springville UT
    (801) 491-8898
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  • 2.  RE: Mitigating Risk of Personal Use of Company Vehicles/Equipment

    Posted 02-08-2019 17:08
    Jyll,

    In terms of the tax rules around company vehicle personal use, IRS Publication 15b - starting at page 21 - is good to review.  In terms of policies my suggestion, if a company allows personal use of a company vehicle, is to deduct a certain amount each month from each driver's pay - the national average is around $120 - and provide a tool for drivers to track their business and personal mileage monthly.  At the end of each year, true-up the total deductions with the actual personal use value - using the table on page 27 of Publication 15b.  I am not a tax expert, but this method has been used by companies for the entire 22 years I have been in the fleet management industry - it works for the IRS guidelines and allows companies to recapture some of the cost of running the vehicle.  Hope this helps, and certainly feel free to reach out with any questions.

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    Martin Lyons
    Regional Sales Manager
    Union Leasing
    Ripon CA
    (209) 665-5796
    mlyons@unionleasing.com
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