Comparing the Two Options for Determining the Gas Portion to W2 for Personal Use of Business Vehicles
When an employee uses a company vehicle for personal use, the company must add the value of the personal use of the vehicle to the employee's W2 at the end of the year.

The value of personal use has two components:
1.  The value of the vehicle from the Annual Lease Value Table.
2.  The value of the gas used.

There are two options for computing the value of the gasoline:
1.  Proration of the actual cost of gas.
2.  5.5 cents per mile.

This calculator calculates the amount that will be added to an employee's W2 for the gas portion of the personal use of a company-owned vehicle, using the two methods mentioned above.  Depending on the cost of gas, and the average miles per gallon, you may be surprised how much you can reduce the amount to be W2'd by using the 5.5 cents per mile method.  Remember that you must also add the amount from the Annual Lease Value Table.
Click the calculator icon to calculate the W2 Amounts

 Inputs Annual Personal Miles: Calculate Per Gallon Cost of Gas: Miles Per Gallon: Evaluation Period: Choose Evaluation Period 1 Year 2 Years 3 Years 4 Years 5 Years

 Results W2 Amount Actual Gas Cost W2 Amount 5.5 Cents Per Mile W2 Amount Difference Annually Entire Evaluation Period