A. City:
1. Determine positions in the city that may be given options for vehicle allowances and amount of allowance deemed appropriate, as approved by the chief administrative officer.
2. As directed by the chief administrative officer, the department of management services will process payment of the amount specified as part of the payroll system.
3. The vehicle allowance will be processed as part of a regular payroll on a monthly basis.
4. The method used to provide the vehicle allowance continues to consider the allowance as income to the employee, under IRS rulings.
5. As a compensation item, the gross allowance will be reported through the payroll system and social security tax will be calculated and deducted. (No income tax withholding will be processed.)
6. The vehicle allowance will be included with the regular W-2 data.
7. An employee assigned a city vehicle under the provisions of policy 1530 of this manual may not receive a vehicle allowance.
B. Employee:
1. Is responsible for all acquisitions and operating expenses of his/her vehicle including licenses, taxes, insurance, repairs, accidental damage, gas, oil, tires, etc.
2. Is responsible to keep the vehicle in good repair, clean and free from damage while using on city business.
3. Must maintain his/her own records of vehicle expenses to comply with IRS reporting requirements.
4. Is responsible for justification of tax deductions; the city assumes no responsibility for verification.
5. Driver must remain qualified and licensed as per Utah state law and policy 1520 of this manual.
6. Per policy section 1550-3 of this manual, employees must carry automobile insurance that complies with the state minimum requirements. All employees are required to be in compliance with state law automobile liability coverage. (Eff. 12-13-2007)