Learn how to report employee use a company car for personal reasons in QuickBooks Online Payroll and QuickBooks Desktop Payroll.
If your employees use the company car for personal reasons, it's called Personal Use of a Company Car (PUCC). PUCC is a non cash fringe benefit that counts as part of your employee's total income and should be taxed.
To learn more about these, and to determine the value of the PUCC check out IRS Publication 15-B or talk to your accountant.
|Note: Not sure which payroll service you have? Here's how to find your payroll service.|
Step 1: Set up PUCC payroll item
Step 2: Create a paycheck
Now it's time to add the PUCC amount to your employee's paycheck.