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Company Cars

Company Cars 101

Company Cars: Rules, Costs & Popular Cars

Company Cars For EmployeesCompany cars can be an extremely attractive perk for employees and have many benefits to the employer as well. [give estimated company vehicles on the road]

Should Companies Offer Vehicles To Employees?

Among the chief benefits of providing business vehicles for your staff is…

  • Increased Exposure: A company vehicle can act as a sort of “rolling billboard” for your business. Every time an employee is driving the company car, others are exposed to your business if you have signage on the vehicle. You see this quite effectively in many of the trades, such as electric, heating, plumbing, construction & real estate.
  • Visible Reward: Employee morale is incredibly important to the success of a business. The happier your employees are, the more productive they can be. In lieu of an actual bonus (i.e. more money) some company’s use a company vehicle as a reward and it works well in 2 ways.
    • It’s Not Common: If you work somewhere and only a select few people get a company car it can make you the employee feel special and committed to the company.
    • Other Employees See This: Many employees will see the employees that get company cars and aspire to hit the same goal. They may look at the company vehicle as the ultimate reward, and most importantly they’ll have to work hard to get it. It’s the ultimate trophy.
    • High-Quality Company: If you give out company vehicles your employees know you value them. Not all companies have this perk and the companies that do have employees that know there’s a very special, attainable reward that only high-quality companies can offer.
  • Flexibility: Much like private air travel or a company cell phone a company vehicle gives an employee a definite convenience factor, and more peace of mind to the company. As an employer, you know that your key people have a company vehicle to conduct business at any time, as necessary.
  • Professional Image: This could actually be one of the best reasons to offer a company car, your business’ image. When a company is looking to retain control of their “brand” or public image, especially if there are face-to-face meetings of any kind, such as repair, real estate showings, estimates, high-powered business deals – a vehicle is one of the first things the prospective client or customer sees. You want your vehicle to represent your business, goals, experience & results. Many companies that offer vehicles to their employees know the right vehicle can make the best first impression.

We know the reasons why businesses choose to offer company vehicles, but what we don’t know are the rules, costs or tax implications associated with running a fleet of business vehicles, or even a select few company cars.

So, let’s start from the top.

Rules For Company Cars

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Unreimbursed Employee Mileage Tax Law Changes

New Tax Law Could Impact Employee Mileage Reimbursement Policies

Last updated on July 12th, 2018 at 10:29 pm

Tax Cuts & Jobs ActWith the new Tax Cuts & Jobs Act in effect for 2018 employees will no longer be allowed to deduct unreimbursed employee business expenses.

So, what does this mean and how does it impact employees going forward? We’ll explain.

Outside of minimum wage laws, there is no federal law requiring employers to reimburse employees that use their personal vehicle for business purposes, though most employers have opted to reimburse for these expenses.

If in the past, as a W2 employee, you may have been required to travel offsite to attend an event such as a sales meeting or a convention. If you had opted to use your own vehicle to travel to-and-from the event, you could reasonably expect that your employer would reimburse your mileage if a reimbursement policy was in place at your company, or worst case, you could write off the expense at years end at the current IRS standard mileage rate of $0.545 per mile.

As of 2018 these unreimbursed expenses are no longer possible. Continue Reading

Delivery Driver 1099 & Taxes

1099 For Gig Delivery Drivers

Last updated on July 12th, 2018 at 10:39 pm

Whether you drive for Instacart, Doordash, Postmates, Shipt or another delivery driver service, this post is for you. Today we’re going to talk about the 1099’s you receive in the mail and what they mean for you and your taxes.

In previous posts, we covered Uber & Lyft 1099 forms (K & MISC) and we’ll be using a similar format for this post as it manages to be both descriptive and helpful with each kind of ridesharing or delivery driver service.

1099 K Form: Delivery DriversStarting in the first week of February delivery drivers will begin getting their 1099 forms for previous years earnings.

It’s officially tax time!

Some delivery drivers will be getting the 1099-MISC if they generated under $20,000 in earnings for the previous year, while others will be receiving form 1099-K if they’ve accrued more than $20k in earnings & 200+ transactions.

Note, a “transaction” in this instance is a “ride”. So if you completed 200 paid rides within the calendar year + you earned more than $20,000, you’ll be getting the 1099-K.

Before we dive into the specifics we need to state that this post is not to be considered tax advice. For specific advice regarding your taxes, you should speak directly with a tax professional.

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Freelancer Taxes

Freelancer Taxes | Filing, Deductions & Paying Estimated Taxes

Last updated on July 12th, 2018 at 10:42 pm

According to a study commissioned by Upwork in conjunction with the Freelancers Union, in 2017 there are over 57,000,000 freelancers, or “independent workers” in the United States. This number totals around 36% of the working population in America!

The number of freelancers and self-employed individuals is expected to grow to a whopping 50% in just a few short years. Thanks to the new Gig Economy, millions of people that otherwise wouldn’t have gone into business for themselves are suddenly driving for Uber, Lyft, Doordash and more.

It’s an awesome thing to see, but not everyone is prepared for the shift from W2 to 1099 worker and the taxes that come with it!

At Everlance we want to help new freelancers understand the difference and some of the requirements for paying taxes as a freelancer. As always, this post does not constitute tax advice and we urge anyone with specific tax questions to consult a tax professional. Continue Reading

Lyft 1099 & Taxes

Lyft 1099 | Filing Lyft Taxes (1099-MISC & 1099-K)

Last updated on July 12th, 2018 at 10:44 pm

Doing taxesLyft 1099 Forms: Starting in the first week of February Lyft drivers will start getting their 1099 forms for their previous year earnings in the mail and that can only mean one thing…

It’s tax time!

As mentioned above, if you drive for Lyft you’ll be getting your 1099 from them soon, but which one will you get?

Some Lyft drivers will be getting the 1099-MISC if they generated under $20,000 in earnings for the previous year. And those drivers that generated over $20,000 in income + at least 200 trips will be getting the 1099-K.

Not too complicated. However, let’s dive in a little deeper to understand how Lyft drivers are classified for tax purposes and what those different 1099 forms really mean.

As always, this post is not to be considered tax advice. For specific advice regarding your tax return, you should speak directly with a tax professional.

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