7153-9

Commuting Usage Report Form

(DOT 9497)
See document history

BACKGROUND

Internal Revenue Service regulations require that the fringe benefit an employee receives when provided a vehicle will be taxable to the employee where commuting usage occurs. This "commuting usage" occurs when the employee uses the vehicle to travel between his residence and work.

Exceptions to this rule occur when the employee travels to a "temporary" job assignment outside his "normal area of employment." A "temporary" assignment is one that can be expected to last only for a short period of time. A Department guideline to help clarify this exception is:

"If the employee were driving his personal vehicle, would mileage be reimbursable under travel regulations?" If not, then the mileage is considered taxable income.

Another exception to the rule occurs when certain types of vehicles are involved. A description of these vehicles is linked to this page.

On July 1, 1985, the State Attorney General issued a letter stating that the commuting mileage in individually-assigned Department vehicles was covered by IRS rules and was, therefore, a taxable fringe benefit. The Department has adopted the IRS option of assigning a $1.50 value one-way or $3.00 value round-trip as additional fringe (or non-wage) income to each employee having an individually assigned vehicle.

The employer need not withhold federal income tax on the vehicle fringe benefit if notification is given to employees not later than December 31st of the preceding year. This is what the Department has chosen to do beginning with calendar year 1986. Notification is accomplished by announcement throughout the Department and/or through the linked optional form.

GENERAL PROCEDURES

ResponsibilityAction
  1. Individually-assigned vehicle employee
  1. Complete a Commuting Usage Report each month by checking each day your individually assigned vehicle was used in commuting between home and work either one-way (1) or round-trip (2).

  2. Turn your signed and completed Commuting Usage Report in to your unit supervisor, keeping a copy for your personal records.
  1. Unit Supervisor
  1. Collects monthly all completed and signed Commuting Usage Reports.

  2. Sends Commuting Usage Reports to unit administrative or district payroll section for forwarding to General Office Payroll Section.
  1. Unit Administrative or Payroll section
  1. Collects all completed and signed Commuting Usage Reports monthly, reviews the forms for completeness, alphabetizes forms, and has transmittal letter prepared indicating the number of attached reports.

  2. Sends Commuting Usage Reports and transmittal letter to the General Office Payroll Section.

  1. General Office Payroll Section
  1. Receives and reviews all Commuting Usage Reports and transmittal letters.

  2. Enters Commuting Usage Reports on the payroll computer system.

  3. Files entered Commuting Usage Reports and transmittal letters by sending unit and by month.

Appendix 1-- DOT 9497 Form
Appendix 2-- Transmittal Letter
Appendix 3-- Notice of Election not to Deduct
Appendix 4-- Excluded Vehicles
Authored by the Office of General Accounting, 404-656-5391

Document History:

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