DUAL STATE EMPLOYMENT
Section 5-208a of the Connecticut General Statutes provides that compensation by more than one agency is restricted. Multiple job assignments within the same agency is restricted. No state employee shall be compensated for services rendered to more than one state agency during a bi-weekly pay period unless the appointing authority of each agency or his designee certifies that the duties performed are outside the responsibility of the agency of principal employment, that the hours worked at each agency ar documented and reviewed to preclude duplicate payment and that no conflicts of interest exist between services performed. No state employee who holds multiple job assignments within the same state agency shall be compensated for services rendered to such agency during a biweekly pay period unless the appointing authority of such agency or his designee certifies that the duties performed are not in conflict with the employee's primary responsibility to the agency, that those hours worked on each assignment are documented and reviewed to preclude duplicate payment and that there is no conflict of interest between the services performed.
PAYMENT OF EMPLOYEES HIRED BY CONTRACT
This section is presently being reviewed by the Office of the State Comptroller, the Department of Administrative Services and the Office of the Attorney General. When completed, this study will be distributed as an addendum to this manual.
REIMBURSEMENT OF FRINGE BENEFITS FROM FEDERAL OR OTHER FUNDS
UNEMPLOYMENT COMPENSATION FOR STATE EMPLOYEES
SECTIONS 31-222(a)(1)(C) & (D), 31-225(d) AND 31-227
OF THE GENERAL STATUTES
Persons employed by the State of Connecticut are covered by the provisions of Chapter 567, Unemployment Compensation, of the Connecticut General Statutes; therefore, persons who terminate employment with the state are eligible to apply for unemployment compensation benefits. The procedures which must be observed in making application and award of compensation are described below.
When an employee is terminating employment with the state, the employing agency must prepare an "Unemployment Notice" (Form UC-61) in triplicate and distribute it as follows:
|Duplicate||- Mail to R.E. Harrington, Inc., P.O. Box 11874,
Federal Square Station, Harrisburg, PA 17108-1874
|Triplicate||- Placed in the terminating employee's personnel
Requests for supplies of Form UC-61 should include the requesting agency's name, address of the state's unemployment claims administrator (c/o R.E. Harrington, Inc., P.O. Box 11874, Federal Square Station, Harrisburg, PA 17108-1874) and the special identification number (assigned to the agency by the Employment Security Division). The request should be directed to:
When a separated employee files a claim for unemployment benefits, and your agency was the last employer, the Employment Security Office will issue a "Notice of Hearing and Unemployment Compensation Claim", Form UC-840, unless you indicated on the "Unemployment Notice", Form UC-1, that the claimant was separated due to "lack of work" or other obviously non-disqualifying reasons. This form must be received by the Employment Security Office within 10 days of its mailing date. You may respond directly to the Employment Security Office or mail or fax the form to REH to respond. If you respond directly, send a copy of the response to REH.
Other forms may also be issued by the Employment Security Office, including the "Notice of Potential Liability", Form UC-280 and "Notice to Employer of Approval of Claim for Benefits", Form UC-56KC. Forward these or other unemployment forms immediately to REH. REH may call the employing agency for more details regarding the claimant's separation.
If the separation information provided to REH indicates that a disqualification should be imposed by the Employment Security Division, REH will protest any determination approving benefits and request a hearing on the issue.
When the hearing notice is issued, REH will contact the employing agency to review the issues involved. The necessary documentation to be presented at the hearing as evidence will be identified. The appropriate witness or witnesses will be determined also. It is essential that the employing agency provide individuals with direct, firsthand knowledge of the reasons for the claimant's separation at the hearing. Hearsay testimony will not be given consideration by the Referee.
If a particular case presents a complicated or precedent-setting issue, REH will assign a representative to attend the hearing with the employing agency witness.
It is of the utmost importance, in all cases concerning the payment of unemployment compensation benefits to former state employees, to notify promptly and provide copies of all forms to REH. The data provided to REH by the various employing agencies serves as the source documents used to verify the requests (received by the Comptroller's Office) for reimbursement to the Unemployment Compensation Fund. Failure to provide copies of all forms to REH may result in improper payments.
The state's agent of record for all notices concerning Unemployment Compensation claims is:
PROCEDURES FOR REQUESTING A NEW PAYROLL DEDUCTION CODE
To request approval for a new payroll deduction, the form must be approved by the Commissioner of Labor, as prescribed by the Connecticut General Statutes, Section 31-71e(2).
Submit your request to the Commissioner of Labor and once approved, submit a copy to the Director of Central Payroll to assign a new payroll deduction code. A new payroll deduction code cannot be assigned without the approval of the Commissioner of Labor.
(SECTION 5-248, 5-255 AND 27-33 OF THE GENERAL STATUTES)
FIELD TRAINING AND EXTENDED MILITARY LEAVE
FOR INDUCTIONS INTO SERVICE
Section 5-248(c) of the Connecticut General Statutes provides that any full-time permanent employee in state service who is a member of the armed forces of the state or of any reserve component of the armed forces of the United States and is required to undergo field training, therein shall, for the period not exceeding three calendar weeks of such field training, be entitled to a leave of absence with pay, in addition to their annual vacation.
An extension of military leave time is provided under Section No. 27-33 of the Connecticut General Statutes whereby an employee ordered to duty at the expiration of their field training, as evidenced by a copy of their special orders, shall receive additional time off with pay provided the period of absence in any calendar year shall not exceed thirty (30) days. No such employee shall be subjected, by reason of such absence, to any loss or reduction of vacation or holiday privileges.
DEDUCTION OF CREDIT UNION SAVINGS
(SEC. 5-261 OF THE CONNECTICUT GENERAL STATUTES)
Automobile and Homeowners Insurance is now available to all State of Connecticut employees through payroll deduction. Coverage is provided by Metropolitan Property and Casualty Insurance Company through their METPAY payroll deduction program. For policy information or a policy quote please call 1-800-541-8483. Kronholm & Keeler Associates, Inc., continues to be our program manager for this insurance coverage.
Employees should be informed that any contract agreement entered into between the employee and Metropolitan is solely the responsibility of the employee and the supplier. If a problem arises, the employee must first contact the insurance company. In extreme cases only, where a problem cannot be resolved and assistance is needed, should the agency contact Central Payroll on behalf of the employee. Written authorization from the employee must be obtained if any action is to be taken.
The applicable payroll codes for this deduction is D/OE 66, Sort Code 00187 which will be maintained by Metropolitan.
REIMBURSEMENT OF JURY FEE AND WITNESS FEE PAYMENT
Any employee who is required to be on jury duty or to attend court pursuant to a subpoena or other order of the court must remit to the state such fees as are received for these services.
If such fee is not remitted or waived, a like amount shall be deducted from the employee's pay for the period involved.
This information must be reported each calendar year to cover the period from January 1 to December 31.
PAYROLL DEDUCTIONS FOR UNITED STATES SAVINGS BONDS
NOTE: Parents or guardians may obtain Social Security numbers for minor children by applying at their nearest Social Security Office.
Three different forms are used for Bond transactions, the type of transaction will determine the correct form to use. The types of transactions and forms to use are:
Initial Authorization for Deduction
Employee must complete a "Payroll Deduction Authorization - U.S. Savings Bonds," form CO-1003. All sections of the form must be completed and signed by the employee.
Change to An Existing Authorization
An employee desiring to change all or any part of an existing authorization for Bond deductions must complete a "Change in Authorization for Payroll Deductions - U.S. Savings Bond", form CO-679. All sections of the form must be completed and the type of change must be indicated.
Termination of a Bond Deduction
Any employee wishing to stop payroll deductions for Savings Bonds and be refunded any balance in their account must complete a "U.S. Savings Bond Deduction Termination and Refund Application", form CO-1003. Any balance in an employee's account will be refunded to the address indicated on the form.
NOTE: No refund will be made unless this form is received from the employee.
The following instructions pertain to the CO-1003:
Refer to Procedures Manual - Chapter 3.
NOTE: Employees on LAW or requesting temporary cancellation of deductions are not required to cancel their authorization.
If the form is returned for correction, have the necessary corrections made and re-submit the form to the Comptroller's Central Payroll Division, again waiting for authorization to begin deductions.
Any change of name on the payroll must be accompanied by a signed CO-1003 to effect the change on the Bond file. No Bonds can be issued in this situation until the change form is submitted.
It is imperative that up-to-date mailing addresses are maintained for the mailing of Bonds. The Comptroller's Central Payroll Division should be notified promptly of changes of addresses by the employee's submission of a signed CO-1003 through their payroll office.
Questions concerning Bonds should be directed to the Central Payroll Division at 566-5436.
MEMBERSHIP IN EMPLOYEE ORGANIZATIONS
All state employees must fall into one of two categories. Those who are covered by a collective bargaining agreement with an exclusive representative and those who are not represented or have no collective bargaining agreement.
In all cases, whether an employee is required to pay union dues or fees to an exclusive representative or not required because of no representation, only one payroll deduction for union dues/fees will be allowed. This provision must be strictly adhered to. When an exclusive representative has been designated, a payroll deduction will only be allowed for that representative (Section 5-280). An employee not represented may elect a single union dues deduction of their own choice according to the provisions of Section 5-260. Employees may voluntarily belong to other unions or associations but their dues payments must be made on a direct basis and not through payroll deduction.
NOTE: All organizations which were qualified for payroll deductions prior to July 1, 1977 shall continue to be eligible except when specifically prohibited by a collective bargaining agreement or such eligibility for deduction is rescinded by the State Comptroller.
In all bargaining units covered by a contract, dues shall be deducted on payroll upon presentation of an authorization for dues deduction. The dues deduction will commence on the next payroll after receipt by the agency payroll clerk of a signed authorization.
In all bargaining units covered by a contract, a service fee will be applied to all employees in the unit who are not members of the exclusive representative.
Except where expressly modified by a collective bargaining agreement, employees must have a service fee deduction which is effective with the first payroll check received as a member of a bargaining unit. It is most important for the agency's staff to make themselves aware of the service fee provisions in the contracts which cover agency employees. The responsibility for the initiation of a service fee deduction rests with the payroll staff and not the employee.
All changes in the amount of membership dues and/or service fees deductions must first be certified to the State Comptroller by the representative union. Agency payroll personnel should make no changes until notified by the Comptroller's Office.
Under no circumstances are cumulative or retroactive deductions for union dues or service fees to be allowed on payroll. Any adjustments must be made directly between the exclusive representative and the employee.
Any person who is employed in more than one position by the state, whether in the same or different agencies, shall be identified in the bargaining unit which contains the primary employment only. All other positions occupied shall be considered exempt.
Persons hired on a provisional basis into a permanent position (subject to examination) should be placed in the bargaining unit applicable to the job title of the employee. It is the position, not the person, which is covered by the bargaining contract. The start of a dues/fees deduction would be in accordance with the provisions of the applicable contract.
Non-status employees such as temporary, emergency, seasonal or other non-permanent basis hires are not covered by the contracts and therefore no dues/fees deduction is required. All persons in this type of situation should be coded to the exempt classification. Note that these individuals may voluntarily elect to pay dues, but fees are not allowable.
INCREASE OF FEDERAL MINIMUM WAGE AND ITS IMPACT ON CGS 52-361a
"(f) Amount subject to levy. The maximum part of the aggregate weekly earnings of an individual which may be subject under this section to levy or other withholding for payment of judgment is the lesser of (1) twenty-five percent of their disposable earnings for that week, or (2) the amount by which their disposable earnings for that week exceed forty times THE HIGHER OF (A) the (federal) minimum hourly wage prescribed by Section 6(a)(1) of the Fair Labor Standards Act of 1939, U.S.C. Title 29 Section 206(a)(1), or (B) THE FULL MINIMUM FAIR WAGE ESTABLISHED BY SUBSECTION (j) SECTION 31-58, in effect at the time the earning are payable."
All other deductions (savings bonds, deferred compensation, etc.) are optional and are not permissible in the calculations of disposable earnings.
Section 52-361a CGS, as amended by Public Act No. 87-196, provides that the maximum part of the aggregate disposable earnings subject to garnishment may not exceed the lesser of:
|METHOD A||METHOD B||METHOD C|
|GROSS WAGES||$ 789.00||$ 789.00||$ 789.00|
|Less: Allowable Deductions||$ 237.00||$ 237.00||$ 237.00|
|DISPOSABLE EARNINGS||$ 552.00||$ 552.00||$ 552.00|
|75% of Disposable Earnings||414.00|
|80 times State Hourly Minimum||------------||414.40|
|80 times Federal Hourly Minimum||------------||------------||412.00|
|AGGREGATE DISPOSABLE EARNINGS
SUBJECT TO GARNISHMENT
|$ 138.00||$ 137.60||$ 140.00|
|Since it is the lesser aggregate disposable earnings which are subject to garnishment, the following rules-of-thumb will apply for current rates:|
|$ 552.54 or more||Use Method A|
|$ 552.53 or less||Use Method B|
|Method C, based on Federal minimum wage, is reflected for comparison purposes only and will not be applicable as long as the Federal minimum wage is less than the state minimum.|
Please direct requests for assistance to the following:
Payroll Procedures: Central Payroll Division
860-702-3452 or 860-702-3454
PUBLIC ACT NO. 90-296
AN ACT CONCERNING DEPENDENT CARE SPENDING ACCOUNTS FOR STATE EMPLOYEES
In 1991, employees were offered the opportunity to establish an account that is to be used for the paying of expenses for dependent care. This program began on February 1, 1991 and the first payroll deduction was taken for the period February 8 through February 21, 1991 (check date March 8, 1991).
The money set aside in this account is excluded from employee's gross income, for income tax purposes. Information regarding this program, its establishment, administration, taxability, social security impact, retirement impact, etc., is provided separately by the Department of Administrative Services (DAS).
An employee may authorize a payroll deduction for a dependent care assistance plan (DCAP) by completing an election form. The Third Party Administrator will supply the election forms to your employees. The employee's Agency Payroll Officer must be furnished with an election form, signed by the employee, which designates:
The employee's signed election form must be on file with the agency before deductions are initiated. This deduction must be for a fixed amount.
Once an employee elects a deduction for a tax year, they cannot change or cancel that deduction unless there is a change in family status. For qualifying changes in a family status, please refer to the administrative information supplied by DAS. An employee requesting a change in the deduction amount for a DCAP must submit a Revision of Benefit Election and Change Form to the DCAP Plan Administrator. AN EMPLOYEE'S DCAP DEDUCTION MAY NOT BE CHANGED WITHOUT THE SUBMISSION AND ACCEPTANCE OF A CERTIFIED CHANGE FORM. This form will be approved by the DCAP Administrator and forwarded to the agency's payroll office to support the employee's change. The change in the employee's deduction amount will become effective prospectively. No retroactive adjustments will be made.
If an employee's pay is inadequate to support all of the authorized deductions, the DCAP deduction will take priority over all other elective deductions.
Based upon the authorization referenced in Section I, the agency payroll staff are to process the employee's deduction request as follows:
Once a deduction amount has been initiated, that amount cannot be changed unless there is a family status change. A family status change only affects future deductions.
Policy: Department of Administrative Services, Management
Relations - 566-2269
Reimbursement Procedures: Third Party Administrator Colonial Life, Benefit
Payroll Procedures: Office of the State Comptroller
Forms and On-Line: Central Payroll Division; 566-5428
Remote Job Entry: Computer Services Division; 566-3214
SECTION 61 OF THE INTERNAL REVENUE CODE
TAXATION OF VEHICLES
|I||State Vehicle Usage Policy|
|II||No Personal Use of Vehicles|
|III||Non-Business/Home-to-Office Use for Control
Employees and Certain Other Employees
|IV||Commuting Use for Eligible Non-Control
|V||Exceptions to Taxation|
|VII||Taxation and Preparation for Entry on Payroll|
|VIII||Election not to Withhold Taxes|
Effective January 1, 1986, Federal Public Law 99-44 (codified as Section 61 of the Internal Revenue Code) mandates that an employee's personal use of an employer-owned or leased vehicle must be reported to the Internal Revenue Service as taxable income. "Personal use" is defined as any non-business use, including commuting from an employee's home to their worksite. For purposes of these regulations, the term "vehicle" means, "any motorized wheeled vehicle manufactured primarily for use on public streets, roads and highways", and generally includes automobiles. Except for certain exceptions as set forth later, all State of Connecticut employees will be subject to taxation on any state vehicle use which is not documented as business use. State agencies will be responsible for implementing the applicable reporting requirements.
The Internal Revenue Service requires that one of several different vehicle-use policies be employed in establishing an employee's eligibility for certain "special rules" for valuation of the taxable fringe benefit. The following IRS requirements and other guidelines are set forth to assist agencies in determining those employees whose use of state vehicles is deemed taxable and in reporting the dollar value, by employee, of such benefits.
As stated by the three branches of government, the policy of the State of Connecticut basically prohibits use of State-owned/leased vehicles except for approved home-to-worksite travel as required by the employer.
To qualify for certain "specific rules" IRS Section 61 states that the employer's written policy statement of no personal use will qualify as sufficient evidence corroborating the employer's own statement if the following conditions are met:
Note: Item 5 (preceding) does not apply to:
In these cases, use of a state-owned vehicle for travel to and from a worksite may be treated as business use, i.e., not commuting.
As used in this Federal Law, a "control employee" as applied by a government employer includes:
The Fleet Operations Section of the Department of Administrative Services (DAS) advised that certain employees are allowed to use state-owned vehicles for non-business use additional to home-to-office travel, based on "past practice". Since the tax base will be the same as that for control employees, these "certain others" will hereinafter be referred to as "control employees". Instructions set forth for control employees will also be applicable to the "certain others".
Even though the State of Connecticut has mandated no personal use of state vehicles except for commuting and possible de minimis personal use, the $1.50 one-way special commuting basis allowable for non-control employees is not available to those elected officials and others deemed to be a "control employee", as defined in the preceding Section III.A.
Instead, either the "lease value" or the alternative "cents-per-mile" method must be elected to determine the benefit valuation (i.e., tax base). An agency may elect the lease value method or the vehicle cents-per-mile method for control employees. Such election should be carefully considered because once one of the valuation methods is elected, the employee must use it for all subsequent years unless the qualification rules are not met. All non-control employees must use the per diem commuting rate.
The valuations applicable to use of vehicles by control employees:
To determine the monthly and per diem lease value rates:
Monthly Rate: ($1,600 */* 365) X Actual Number of Days of Continuous Use including Saturdays, Sundays and Holidays, e.g., for a 30-day month:
($1,600 */* 365) = $4.38 X 30 = $131.00
Per Diem: The Per Diem rate is four times the annual lease value divided by 365 days, i.e.:
($1,600 */* 365) X 4 = $4.38 x 4 = $17.52
Maintenance and insurance are deemed included in the annual lease value. However, fuel, chauffeur service or any other service furnished by the employer (other than maintenance and insurance) must be separately included in computing the employee's gross income at a fair market value. Fuel must be included at the rate of 5.5 cents per mile for all miles driven.
Employee A: Vehicle was driven a total of 3,000 miles in a month, of which 1,200 were documented as business use and 1,800 miles applied to Employee A's home-to-office travel. (Continuous availability to "A" for three weeks).
|Lease Values (monthly)||$131.00|
|Fuel (3,000 miles x $.055)||$165.00|
|Total Monthly Operating Cost||$296.00|
1,800 miles\3,000 miles = 60% (non-business use)
$296.00 x 60% = $177.60 (value of non-business use)
Thus, the taxable benefit for Employee A is $177.60.
Note: The IRS also requires that the annual 10,000 mile minimum be the result of consistent usage. For example, 2,000 miles on the vehicle in the first six months and then 8,000 miles during the second half of a year is not acceptable. If this occurs, lease value rates will apply rather than cents-per-mile.
Example: If the cents-per-mile had been used in the preceding example with monthly mileage of 3,000 total miles (1,200 official business and 1,800 non- business), the calculation would be:
1,800 miles x $.315 = $567.00 (Value of non-business use which is the taxable benefit to the employee)
See form CO-960 (Exhibit B.2.(b))
Note: Shared Vehicle Usage
The same valuation rule must be applied for each employee who shares a vehicle. The commutation value of the vehicle benefit is to be allocated among employees who share use of the vehicle, including the driver (unless the employee does not perform other services for the employer).
The second type of written policy statement that will satisfy the employer's substantiation requirements, is one that prohibits personal use by the employee, except for commuting. To qualify under this rule, the following conditions must be satisfied:
The above exception does not apply to an employee who is a "control employee". Further, for the exception to apply, there must be evidence that would enable the IRS to determine whether the use of the vehicle meets the five conditions listed above.
Example: Employee commuted in a state-owned vehicle for eleven working days, but used vehicle only one-way on three of those days.
9 1/2 R.T.'s X $3 = $28.50 Taxable Fringe Benefit
Refer to instructions in the preceding Section III.C.1.(e).
See form CO-959 [Exhibit B.2.(c)]
Note: Form CO-959 should also be used for those employees subject to taxation on benefits derived as passengers who commute in state-owned vehicles. In such instances, the passengers will inform their employing agency monthly by written memorandum of the number of pertinent commuting trips.
Our review of the pertinent IRS regulation indicates that the following categories of vehicle use are not presently subject to taxation:
The term "qualified non-personal use vehicle" is applied to any vehicle that, by reason of its nature, is not likely to be used more than a very limited (i.e., de minimis) amount for personal purposes.
Refer to Exhibit A.1 for a listing of "qualified non-personal use vehicles" that fall within this exception, together with explanatory information relative to the exception requirements for vans and trucks, Exhibit A.2, and the narrowly-defined requirements for "law enforcement officers", Exhibit A.3.
The Legislation and Regulations Division of the Office of Chief Counsel, Internal Revenue Service, advised that taxation would not apply if an employee used an approved state-owned or leased facility for the overnight "garaging" of an assigned state vehicle even though such facility was some distance from employee's worksite and possibly close to their home. However, this exception was qualified by three stipulations: (a) vehicle usage and parking location must make "good business sense" to the employer; (b) overnight parking location must be approved by employer; and (c) if the driver transports one or more passenger from their home(s) to worksite, such passengers are subject to taxation on the derived benefits.
The regulations state:
The following is subsequently set forth under "Examples":
(f) (2): "Benefits not excludable as de minimis fringes. Examples of fringes benefits that are not excludable from income as de minimis fringes are: ...the commuting use of an employer-provided automobile or other vehicle more than once a month; ..."
Therefore, it appears that an employee's once-a-month vehicle use need not be reported as a compensatory benefit subject to taxation. However, regulations further state that, if either the value or the frequency of use exceeds the limits provided, no amount of the benefit is considered de minimis.
Commuting to a temporary work location is a deductible business expense, under Section 162 of IRC, provided certain conditions are met. Working condition deductible business expenses are excludable from an employee's gross income.
To qualify for an exclusion, an employee must have one or more regular work locations but must be going from their residence to a temporary work location. This ruling defines:
Employees commuting in a state vehicle should not report as a vehicle use fringe benefit commuting miles to a temporary work location as defined above.
Each agency should elect the valuation method to be used, by employee, based upon whether the employee is a "control" or "non-control" employee.
Agencies must also maintain the records necessary to properly substantiate the dollar value of the vehicle-use benefit for the period November 1, through October 31, of each year (special accounting period).
In accordance with Standard State Travel Regulations, employees must continue to submit Monthly Usage Reports (form CCP-40), (Exhibit "B"). This form provides for the allocation of mileage to "official business" and/or to "nonbusiness/home-to-office/special commuting".
Photocopy sufficient copies of the applicable forms for one per vehicle user and complete the top section of the record. Agency needs will vary depending upon the agency's election methods for control employees.
The current year's Vehicle Use Fringe Benefit amounts are to be entered on the Payroll as "Motor Vehicle Usage". Such compensation will not be reflected in Net Pay. However, this is IRS-reportable income and will be subject to Social Security and Federal Income Taxes.
Payroll is to be scheduled every three months. From the last day of the quarter in which the vehicle is used until the scheduled payroll entry date, approximately thirty days are allowed for the employee's submission of the third month's motor vehicle report and for the agency's computation of the taxable fringe benefit amount: i.e., the amount to be entered as "motor vehicle usage" on the payroll.
- Termination of Employee - If an employee retires or otherwise terminates employment, the dollar value of vehicle use to date of termination should be computed immediately. Such fringe benefit amount(s) should be reflected on the employee's last paycheck.
Prepare a form CO-1004, Time Card Entry. Enter Payroll Unit, Period Ending Date (e.g., 92/09/10), Employee Number, Transaction Code 1, Vehicle Usage Amount in dollars and cents in the Salary Amount field with leading zeros (e.g., 0010000 = $100.00), D/OE Code 02 in D/OE field.
|Employee No.||Trans. Code||Salary Amount||D/OE Code|
Enter State (Level 1), Payroll Unit (Level 2), Employee Number, Transaction Code 1, Vehicle Usage Amount in the Rate or Amount field with leading zeros (e.g., 0010000 = $100.00), D/OE Code 02 in the D/OE Code field.
See Screen 381 instructions.
Generate a ZT transaction with the following information:
Enter State (Level 1), Payroll Unit (Level 2), Employee Number, Transaction Code 1, Vehicle Usage Amount in the Salary Amount field with leading zeros (e.g., 0010000 = $100.00), D/OE Code 02 in the D/OE Code field.
| Time Entry
VIII. Election on Not to Withhold
The State of Connecticut will continue its election not to withhold income and employment taxes, other than social security, on the imputed value of an employee's nonbusiness use of an employer-related vehicle.
Each agency must notify its employees of the state's decision to not withhold federal and state income tax on the vehicle use benefit. In your notification to agency employees, inclusion of the following information is recommended:
"Personal use of a nonexempt state vehicle by state employee(s) for commuting or other nonbusiness purposes must be considered taxable compensation and reported on the employee's Form W-2. Although the state does not withhold income and employment taxes, employee(s) will still be incurring a tax liability. The payment of this tax liability may be postponed until the employee's return is filed. However, employees should recognize that 90% of their tax liability must be paid in advance through deductions from earnings (i.e., withholding) and/or periodic payment of estimated taxes. It is the employee's responsibility to seek tax counseling, if needed, insofar as increasing tax payments by revisions to their Form W-4 and CT W-4 and/or estimated taxes."
QUALIFIED NON-PERSONAL USE VEHICLES:
For years beginning after 1985, any vehicle that, by reason of its nature, is not likely to be used for more than a very limited (i.e., de minimis) amount for personal purposes is exempt from substantiation requirements generally imposed on employer provided cars. The term "qualified non-personal use vehicle" is applied to these types of vehicles. However, an employer's deductions related to the business use of such vehicles must still be justified under the general rules applicable to other types of business expenses.
Examples of "qualified non-personal use vehicles" that fall within this exception are:
VANS AND PICKUP TRUCKS
Vans and pickup trucks are not automatically classified as exempt vehicles because they can be easily used for personal purposes. However, if a van or pickup truck has been specially modified with the result that is not likely to be used more than de minimis amount for personal purposes, it will be classified as "qualified non-personal use vehicle" and exempt from the substantiation requirements. For example, a van that has only a bench for seating in which permanent shelving has been installed, that constantly carries merchandise and that has been specially painted with advertising or the company's name will qualify as a vehicle not susceptible to personal use.
LAW ENFORCEMENT OFFICER
In order for an unmarked police vehicle (see number 15 on preceding page) to be classified as a qualified non-personal use vehicle, it must be used by a law enforcement officer.
A "law enforcement officer" is an individual who is a full-time employee of a governmental unit that is responsible for the prevention or investigation of crime. In addition, the employee must be authorized by law to carry firearms, execute search warrants and make arrests. The employee must regularly carry firearms, except when it is not possible to do so due to the requirements of undercover work.
An arson investigator may be considered a "law enforcement officer" while an IRS special agent may not be.
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