Agree Use Business For Car Insurance
Description
How to fill out Small Business Startup Package For S-Corporation?
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FAQ
The use of company vehicles is restricted to employees of the company only. Non-employees such as spouses, children, other relatives, or friends are not authorized to drive company vehicles at any time. Employees driving company vehicles are required to wear safety belts (seat belts) any time the vehicle is driven.
If you use your personal vehicle for work purposes like client meetings, business errands or deliveries, you may need hired and non-owned auto insurance (HNOA). For a very serious accident or one with a number of injured people, your personal auto policy may not be enough to cover the damages.
To determine the agreed value, owners usually have to have the insured item appraised and submit that value to the insurance company. The insurer may conduct its own assessment as well.
They should: Drive safe and sober. Respect traffic laws and fellow drivers. If applicable, wear glasses or contacts when driving. Document any driving-related expenses, like fuels and tolls. Check their car regularly to ensure gas, tire pressure and all car fluids are at appropriate levels.
Report the value of the personal use of the company vehicle on the employee's Form W-2. Include the amounts in Boxes 1, 3, and 5. Also, report the amounts you withheld in Boxes 2, 4, and 6. If you choose not to withhold federal income tax, you must still include the fair market value of the benefit in Box 1.