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USTaxAdvising
USTaxAdvising, CPA
Category: Tax
Satisfied Customers: 1237
Experience:  US Taxation specialist.
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If my employer pays my car lease as a part of our deal, is

Customer Question

If my employer pays my car lease as a part of our deal, is it treated as compensation for company (corporation) whereby they must pay fica other taxes and for me is it treated like compensation where I would owe taxes on the value?
Submitted: 4 years ago.
Category: Tax
Expert:  USTaxAdvising replied 4 years ago.

USTaxAdvising :

Yes this would generally be considered compensation and subject to employment taxes. (FICA and Medicare)

USTaxAdvising :

The only time it would not be considered part of your compensation is when you would use a company car for business purposes. This would be a "working condition" fringe benefit.

USTaxAdvising :

The fact that the company is paying part of your personal car lease would definitely be considered compensation which would be subject to employment taxes.

USTaxAdvising :

If you used the car for business purposes then you could get your employer to reimburse you for these costs so long as the employer had a written reimbursable plan.

USTaxAdvising :

This reimbursement would not be considered compensation and thus not subject to taxation.

USTaxAdvising :

I hope this helps, please let me know if you have any further questions.

JACUSTOMER-ovmq2v4r- :

Thanks.

USTaxAdvising :

No problem. I see that you have not yet provided a rating. Please let me know if something is not clear or if you need additional clarification.

USTaxAdvising :

Best regards,

Expert:  USTaxAdvising replied 4 years ago.

Hello,

 

Just a friendly follow up. You have not yet accepted or rated my answer so I am wondering if there is something which is not quite clear or understood. Please let me know if you have any further questions.

 

Best regards,