3 APA's Top Payroll Questions & Answers for 2020 Electric vehicles (IRS) My employer will be purchasing a fleet of electric vehicles. We are trying to determine which method to use to determine the value of the personal use of these vehicles. Are there plans at the IRS to establish a different cents-per-mile rate for electric cars? A. The IRS is aware of this issue of personal use of employer-provided electric vehicles, and it is studying the issue. Reimbursement of employee gym membership Q. If a company gives employees up to $35 a month towards their gym membership, is there any reason this benefit would not be taxable? The employees just need to provide a copy of their gym membership contract and then submit a claim for a reimbursement. This benefit is not tied to any health plan. A. The amount you reimburse the employees for their gym membership is taxable. You are paying cash to the employees for their use of a gym. It is not a business expense that could be reimbursed under an accountable plan because there is no business connection here; an employee's personal expenses do not qualify. The only way the use of a gym or athletic facility is nontaxable is if it is on the employer's premises, and only then if all of these conditions are met (see The Payroll Source®, §3.2-1): * The facility is located on the employer's premises, whether leased or owned by the employer. * The facility is operated by the employer through its employees or another entity. 25 Taxable and Nontaxable Compensation Q.https://bookshelf.americanpayroll.org/payroll_source/ https://bookshelf.americanpayroll.org/payroll_source/