Commuting Rule
If the only personal use of an
employer-provided vehicle is commuting to and from work, then the employer can use the commuting rule. The value of each one-way commute is $1.50, and either the value has to be included in the employee’s wages or the employee can reimburse the employer this amount.
The commuting rule is the easiest method to use because it does not require employees to keep mileage logs of vehicle use, and it is the easiest for employers to administer. However, employers can use this rule only if four requirements are met:
- The employer provides the vehicle to the employee for use in the employer’s trade or business.
- The employer has a written policy that does not allow the employee to use the vehicle for personal purposes, “other than for commuting or de minimus personal use (such as a stop for a personal errand on the way between a business delivery and the employee’s home).”
- The employee in reality does not use the vehicle for personal purposes.
- The employee is not a control employee. Control employees are defined in Publication 15-B.