Annual Lease Value Rule Estimator

Employers and Employees can use this estimator to calculate an estimate the cost of the personal miles driven using a company vehicle for an entire year. *WARNING! Results are estimates, not guarantees. This should not be used for pay period amounts either; but more-so an annual estimator.* By pressing the button below, you are agreeing to Workforce 2080's Privacy Policy as well as Workforce 2080's Terms Of Use.

Last Updated 2/26/2023 @ 10:17 AM CDT

Continue to Step 1

Do you have the Fair Market Value of the Vehicle?

YesNo

You will first need the Fair Market of the Vehicle you are providing to the employee. If you do not have this number, you cannot proceed!

What is the Fair Market Value (FMV) of the vehicle which has been provided to the employee this year?

Do you have the total business mileage the employee drove in the vehicle this year?

YesNo

You must have the total number of miles the employee drove for business to complete this calculation. Please obtain that information and press yes when you have it.

How many miles did the employee drive for business this year?

Do you have the total personal mileage the employee drove in the vehicle this year?

YesNo

How many miles did the employee drive for personal this year?

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This page was last updated on 12/17/2022 @ 3:38 PM CDT

The Fair Market Value of the Vehicle driven by the employee is:

The employees total business mileage driven for the year are:

The employees total personal mileage driven for the year are:

The employees total personal mileage makes up this percentage:

The Fair Market Value Dollar Amount is what will be multiplied by the above percentage:

The total dollar amount which needs to be added to employees taxable wages for tax purposes only is:

**Please keep in mind the taxable portion of this is added to the employees wages and reported on the W2 as taxable income; however, it is *not* physically paid to the employee as they received the benefit of driving the vehicle for personal use as the benefit. You would want to ensure this is an In/Out earnings for your organization where you insert it for taxable wages, then remove it at the end after taxes have been calculated so you don't physically pay the employee the amount as wages. You can think of it similar to cash tips which were already paid, but need to be taxed.**

**The above number is an estimation and should only be used as a reference point. Questions regarding the amounts you are paid, deducted, or taxed should all be brought to your employer for further clarification. Workforce 2080 provides these estimations to assist employees and employers determine a rough estimation of what taxes, payments, or deductions *could* be. These estimations should not be construed as implict or explicit guarantees in any way. Many factors come into play, such as rounding of figures in Payroll Software, errors in the submission through this portal etc. Workforce 2080 assumes no risk with these estimations and provides these tools to help educate the general population. All users who use these products and estimators outside of their intended use assume risk when used outside of the scope of educational and general knowledge.

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