Under IRS regulations, employees are subject to Federal and State income and withholding taxes on the value of your personal use of an employer-provided vehicle. These regulations allow employers the option not to withhold income taxes on this value. Employers are still required, however, to include this value on the Form W-2 employees will receive during the year.
Illinois State University is electing not to withhold income taxes on the value of your personal use of an employer-provided vehicle. Illinois State University is still required to withhold employment taxes (e.g, Medicare, Old-Age Survivor Disability Insurance), if applicable.
To avoid having to pay additional taxes when employees file their tax return, employees may wish to amend their Form W-4, withholding certificate, to provide for additional withholding. Alternatively, employees may wish to make payments of estimated taxes by filing Form 1040-ES.
