Notice of Employer's Election Not to Withhold Income Taxes for Vehicle Fringe Benefit
68 Abby Road
Marlboro, VT 12551
Dear Ms. Flood,
You have been provided a company-owned vehicle to assist you in the performance of your duties with Madison, Inc.. Any personal use of this vehicle is subject to employment and income taxes. This letter is to notify you that Madison, Inc. has, under Internal Revenue Code Sec. 3402(s) elected not to withhold income taxes on the value of the personal use of the vehicle provided to you. Employment taxes (i.e., Social Security), however, will be withheld. The value of the personal use is taxable income and will be reported on your Form W-2. You may want to increase the amount of your withheld income taxes based upon your personal use of the vehicle and your individual tax situation. You should consult with your tax advisor before yearend for assistance.
Authorized signature of Madison, Inc.
Copyright 2004 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject.--ISSN 1089-1536
--Last update 11/05/04