Gas Cards for Employees

Copper · April 2004

Good Afternoon.

My message comes from an independent insurance agency in RI.

We would like to get some guidance in regards to employees having gas cards. Currently, we have producers that have gas cards. Up to the end of last year, we monitor the gas use and pay the gas bill in full, considering this to be more of a "perk".

Starting this year, we are going to place the amount of the annualized gas expense on the employees W-2 as income. There is thought of having them complete an auto log which I am sure is going to be a night mare, for them as well as for book keeping purposes.

What are others doing?
What are the pros and cons?

Any information you can help with will be greatly appreciated. Thank you so much.

Copper, RI

deniseE · April 2004

We have a Travel Log in each vehicle that users fill out. It includes the odometer reading at the beginning of the trip, odometer reading at the end of the trip, the driver, any passengers, destination, and any maintenance issues with the vehicle.

Inside this binder we keep a credit card that is good for gas and emergency repairs only. To pump gas you must enter the odometer reading into the "pay at the pump" thing. and that number prints onto the receipt.

I'm sure that we have someone that will reconcile the milage and make sure that the trips are what the ee's say they are. (I'm going to Philly! Then how did you fill the tank in Pittsburgh?)...the recipts must stay with the car.

It is a headache to manage, but I can see ee's not wanting to claim this as income on the w-2...especially for a company car.

colleenr · April 2004

We use gas cards in our offices. We use it to monitor and control expenses. We do not add to wages as they use their cars alot for business

Gas Cards for Employees

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