In order to qualify for a company vehicle, employees must complete a form and file a copy of their driver`s licence. Employees can only drive a company car if they have a valid driver`s license and a clean driver`s license for at least [X years]. General Assessment – This refers to the price the employee would pay to pay for the vehicle during the same period at the same geographic location. [Company name] [authorized/not the personal use of corporate vehicles on a case-by-case basis]. Personal use includes the use of the vehicle for personal shopping between business activities, commuting between the workplace and the home, or using the vehicle outside of business hours. If you rent a vehicle and choose the standard mileage method, you must use the rate for the entire rental period, including extensions. The Enterprise Vehicle Directive provides employees with guidance on the acquisition, qualification and use of a company vehicle. A “company vehicle” is any vehicle that assigns [company name] to employees. This directive applies to all employees who use a company vehicle and applies during and outside of working time.
According to the IRS, if you use a vehicle solely for business purposes, you can deduct all of its operating costs, subject to limits. If you use the car for business and personal purposes, you can only deduct the cost of using the car. When an employee uses a corporate vehicle for personal use, it is a taxable ancillary benefit. Personal use includes commuting to and from work, running groceries or the possibility for a spouse or family member to use the vehicle. Employees can qualify for a company vehicle if they travel miles or more per year for work purposes, need a service vehicle for their day-to-day work, or if they need a vehicle advantage. A company vehicle directive or enterprise vehicle use agreement defines employees eligible for a vehicle in the company`s fleet. In addition, the qualification requirements for a company car, the basic rules that employees must follow for the use of company vehicles and disciplinary measures for the misuse of vehicles are presented. The personal use of a company vehicle for employees is a responsibility for businesses, but it is also an advantage that helps attract and retain employees. Companies should indicate in their vehicle policy whether personal use is permitted and that the company`s safety rules continue to apply during personal use.