Illinois State University is electing to forgo withholding income taxes on the value of an employee’s personal use of an employer-provided vehicle. Per IRS regulations, employees are subject to federal and state income and withholding taxes on the value of their personal use of an employer-provided vehicle.
Employers are required to include the value of the personal use on the employee’s Form W-2. The University is also required to withhold employment taxes, such as Medicare and Old-Age, Survivors, and Disability Insurance (OASDI) if applicable.
Employees may amend their Form W-4 to increase tax withholding amounts by following the Updating Tax Withholding – Self Service instructions. Employees may also make payments of estimated taxes by filing IRS Form 1040-ES. A tax advisor should be consulted for additional information.
