preview

Work Vehicle Research Paper

Satisfactory Essays

Does Your Business have a Work-Vehicle? Here's How to Keep it Legal Having a company car is an excellent way to reduce costs and liabilities. It can also be offered as a perk to high performing employees and even used as an incentive to attract new employees. Below explains four ways to make sure that your work vehicle is in legal compliance. Have a Company Vehicle Policy Any company that allows employees to use work vehicles as part of their regular duties should have a company vehicle policy. Consider creating a customized policy that meets your individual needs. Always be sure to have an attorney review the policy to ensure that it provides full legal protection. The Society for Human Resource Management offers a sample company vehicle policy, here: http://www.shrm.org/templatestools/samples/policies/pages/cms_004325.aspx. Review and Enforce the Company Vehicle Policy Companies cannot simply have a vehicle policy for show, they must train their employees on the policy. Make sure that management review the policy every year with employees and requires them to sign and date that they have received the training. This will be very beneficial if there is ever any unsafe or inappropriate driving behavior from an employee. Never allow employees to use the …show more content…

It is very important to decide whether to use the standard mileage rate versus the actual vehicle expenses. That is, using the standard mileage rate for economic vehicles will result in a bigger deduction. Conversely, using the actual expenses option for more expensive vehicles will result in a bigger deduction. Keep in mind that equipment vehicles, such as dump trucks, and vehicles for hires, such as taxis, are not tax deductible. In addition to this, there are specific depreciation deductions to limit the use of luxury vehicles for business use. Be sure to keep very accurate and neat

Get Access