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Written Policy Statements <br />Erraployer must maintain a written policy statement that implements a policy restricting personal <br />use ofemployer-provided vehicles. The Conference Report to P.L. 99-44, Contemporaneous <br />Recordkeeping Requirements Repeal, states that a resolution of a city council, or a provision of <br />state law, or the state constitution qualifies as a written policy statement for the safe harbor <br />provisions. <br />Employer Monitoring Required <br />Although detailed recordkeeping is not required, the employer must have some way to prove <br />that the vehicles are being used in accordance with the rules. For example, internal controls such <br />as requiring employees using motor pools to sign the vehicle out, and signed statements by the <br />employees agreeing to no personal use, or (if applicable) no personal use other than commuting. <br />Example: An employer has a motor pool with vehicles that employees use on a daily <br />basis, returning them at the end of the day. The employer does not have a written policy <br />concerning personal use of the vehicle. The employees using the vehicles are not <br />required to keep a record of use of the vehicles. The employer does not have a written <br />policy in effect and therefore, does not meet the safe harbor substantiation rules. Since <br />the employees do not keep records of use of the vehicles and the employer does not have <br />a written policy prohibiting personal use, the value of the use is considered wages. <br />Example: If the employer maintained a written policy prohibiting personal use of the <br />vehicles and met all the safe harbor conditions of the regulations, none of the value of <br />the use is taxable as a wage to the employees. If safe harbor substantiation rules are in <br />effect, employees are not required to keep records of the use of the qualified vehicles. <br />56 <br />