Examples
Example 1. The employer provides leased company cars, each with a value of $200 per month, to its employees. An employee's use of the car is 75 percent business and 25 percent personal. The personal use of the car ($50 per month) is not taxable Pennsylvania compensation to the employee.
Example 2. The employer provides dependent care for its employees in a facility it leases and pays all the costs. The value of the dependent care is not taxable Pennsylvania compensation to the employees.
Example 3. The employer allows its employees to use the company’s plane to go to its recreational property. The value of the use of the plane and the recreational facilities is not taxable Pennsylvania compensation to the employees.
Example 4. An employee leases their own vehicle for $200 per month. The employer reimburses the employee for the full value of the lease ($2,400). The employee’s use of the car is 75 percent business and 25 percent personal. The $2,400 is taxable compensation on the employee’s W–2 form. The employee may deduct $1,800 on PA-40 Schedule UE. The personal use of the car ($600) is not deductible.
Example 5. The employer reimburses its employees $50 per month for the dependent care costs they incur. The employer must include $600 in the employees’ W–2 forms as taxable Pennsylvania compensation.
Example 6. The employer rewards the 'employee of the year' with a paid vacation. The value of the vacation is taxable Pennsylvania compensation to the employee.
Example 7. The employee can elect compensation or to receive reimbursement. The amount is taxable for the employee for PA PIT.