Notice to employees of election not to withhold income tax on personal use of automobiles
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.