The following is excerpted from state fleet policy. See the New State Fleet Driver Policies link for the full text. De Minimis Use is explained at the bottom of this article.
PERSONAL USE OF STATE VEHICLES
All drivers operating state vehicles must comply with the following personal use policies. State vehicles shall not be used for personal purposes other than commuting and may be used for commuting only if:
- The agency requires the employee to commute in the vehicle for valid business needs of the agency.
- The agency requires the employee to use the vehicle; it cannot be voluntary on the employee’s part.
- The agency prohibits the personal use other than commuting and incidental use (see below), while on official state business.
When not being used by an employee, the vehicles are parked at the agency (i.e., work shared or motor pool vehicle); vehicles are not to be used for any personal purposes. Work shared and pool vehicles may not be used for commuting unless required by the employer.
The following is explanation, advice, and interpretation of the above:
De Minimis use:
- Taking any employer-provided (fleet or rental) vehicle home is considered by the IRS to be a taxable fringe benefit so it must either be counted as income or the employee must reimburse the employer.
- The state forbids agencies from adding the value of personal use of fleet vehicles to the income reported on the W2 form, so employees must reimburse the employer for personal use of fleet vehicles or vehicles rented by the employer.
- State of Wisconsin fleet policy states '... If the employee needs to take a pool vehicle home overnight or on the weekend when the fleet office is not open for business, written authorization from a supervisor is required. If a motor pool vehicle is taken home more than once a month the employee is required to reimburse the state for personal miles traveled. ...'
- The DOA-3101 form can be used to evidence supervisory approval for taking a motor pool vehicle home. Give a completed and signed copy of the form to the fleet dispatcher when you pick up the car.
here for a sample Form DOA3101 Pool Reservation
here for a blank Form DOA3101 Pool Reservation
The IRS recognizes use of less than once per month as something called 'de minimis' use and defines such use as not being a taxable fringe benefit.
This means that up to eleven times per year, no more than once per month, an employee can take an employer provided car home without having to reimburse. The Code of Federal Regulations Part 26, 1.132-6
states in part "... the fact that the commuting use of an employer-provided vehicle more than one day a month is an example of a benefit not excludable as a de minimis fringe...
...does not mean that the commuting use of a vehicle up to 12 times per year is excludable from gross income as a de minimis fringe. ..."