COMPTROLLER'S SEAL STATE OF CONNECTICUT
STATE OF CONNECTICUT
WILLIAM E. CURRY JR.
COMPTROLLER
OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
EDWARD J. FORAND JR.
DEPUTY COMPTROLLER

MEMORANDUM NO. 94-31

December 12, 1994

TO THE HEADS OF ALL STATE AGENCIES

Attention: Chief Administrative and Fiscal Officers, Business Managers, and Payroll and Personnel Officers
Subject: Taxation of Employer-Provided Vehicle Fringe Benefits on Terminating Employees

For employees who are leaving state service, it is important that motor vehicle usage reports are received by their Business Office for computation of the taxable fringe benefit amount; i.e., the amount to be entered as "motor vehicle usage" on the payroll before the last expected paycheck.

As required by Federal Law, FICA tax on the fringe benefit compensation must be deducted from all covered employees at the applicable rate.

If an employee 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.

Questions may be directed to the Office of the State Comptroller as follows:

Computation of Benefits: Accounting Systems Division, 702-3440

Payroll Procedures: Central Payroll Division, 702-3447.

WILLIAM E. CURRY JR.
STATE COMPTROLLER

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