COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
DEPUTY COMPTROLLER
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| 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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