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Fringe Benefits Tax Info Sheet Valuing
personal use of company owned autos
An employer can value an employee's use of a company car {for income tax
withholding, payroll taxes and W-2 reporting) based on what it would cost the
employee to lease a comparable car. Since this is usually impractical, three
special valuation methods are available to employees.
|
Availability of Special Valuation Methods |
|
|
Annual
Lease Value |
Commuting Value |
Cents per Mile |
|
Car
provided to control
employee |
OK |
Can't Use |
OK |
|
Car's
FMV over $15,100
($16,100
for light trucks and
vans) in 2007 |
OK |
OK |
Can't Use |
|
Non-de
minimis personal
use
other than commuting |
OK |
Can't Use |
OK |
|
Car driven less than 10,000
miles/year |
OK |
OK |
Can't Use |
The annual lease value (ALV) is based on an auto's fair market value (FMV) on
the day it is made available to an employee for personal use. The personal-use
percentage (based on miles driven during the year) of the ALV amount is taxable
income to the employee.
|
Annual Lease Value Table |
|
Automobile FMV |
Annual Lease Value |
|
$ 20,000 to 20,999 |
$ 5.600 |
|
21,000 to 21,999 |
5.850 |
|
22,000 to 22,999 |
6.100 |
|
23,000 to 23.999 |
6.350 |
|
24,000 to 24,999 |
6.600 |
|
25,000 to 25,999 |
6.850 |
|
26,000 to 27,999 |
7.250 |
|
28.000 to 29.999 |
7.750 |
|
30.000 to 31,999 |
8.250 |
|
32,000 to 33,999 |
8.750 |
|
34,000 to 35.999 |
9.250 |
|
36,000 to 37,999 |
9.750 |
|
38,000 to 39,999 |
10.250 |
|
40,000 to 41,999 |
10.750 |
|
42,000 to 43,999 |
11.250 |
|
44,000 to 45,999 |
11.750 |
|
46.000 to 47,999 |
12.250 |
|
48,000 to 49.999 |
12.750 |
|
50,000 to 51.999 |
13.250 |
|
52,000 to 53.999 |
13.750 |
|
54.000 to 55.999 |
14.250 |
|
56.000 to 57,999 |
14.750 |
|
58,000 to 59,999 |
15.250 |
|
II FMV
> $59,999, ALV equals (.25 �
FMV of the auto) + $500. |
|
Employer-provided fuel must be added at FMV or at 5.5�
per mile. |
HEALTH SAVINGS ACCOUNTS
Individuals whose only health insurance is a high deductible health plan can
make HSA contributions.
|
|
High Deductible Health Plans
(2007) |
|
Coverage |
Minimum
Annual Deductible |
Out-of-Pocket Expense Limit* |
|
Individual |
$ 1,100 |
$ 5,500 |
|
Family |
$ 2,200 |
$ 11,000 |
|
* Policy premiums don't count as out-of-pocket expenses. |
2007 HSA Contribution Limits
Individual has Self-Only Coverage - $2,850
Individual has Family Coverage - $5,650
Additional deductible contribution for taxpayers age 55 or more
|
Permitted
Cafeteria Plan Benefits |
|
Tax-Free Benefits |
Taxable Benefits |
|
-
Accident
and health insurance
premiums including
accidental death or dismemberment insurance
and dental insurance and
reimbursements for
prescription
drugs, vision and dental care costs and other uninsured medical costs.
-
Flexible
spending account (FSA)
arrangements to
reimburse the employee for qualified dependent care expenses and/or
qualified medical expenses including
prescription drugs, some
nonprescription
medications and dental and vision care
costs
-
Group-term life insurance coverage
(up to $50,000)
-
Disability insurance coverage
-
Dependent care assistance (up to
$5,000)
-
Adoption
assistance benefits.
|
-
Premiums
for group-term life
insurance over the
$50,000 tax-free coverage limit.
-
Medical
coverage, group-term life
insurance coverage, and dependent care assistance benefits that are
taxable income to the recipient employee because applicable
nondiscrimination requirements for these
benefits are not met
|
|
|
|
|
|
Monthly Imputed Income per $1,000 of Group-Term
Life Insurance Coverage |
|
Employee's Age |
Imputed Cost |
|
Under 25 |
.05 |
|
25 through 29 |
.06 |
|
30 through 34 |
.08 |
|
35 through 39 |
.09 |
|
40 through 44 |
.10 |
|
45 through 49 |
.15 |
|
50 through 54 |
.23 |
|
55 through 59 |
.43 |
|
60 through 64 |
.66 |
|
65 through 69 |
1.27 |
|
70 and older |
2.06 |
|
Note:
Table cost is pro-rated if less than a full month of
coverage. |
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