Whitestown workshop hears workers’ concerns over taxes, on‑call needs for take‑home vehicles

At a Jan. 21 Town of Whitestown workshop, public‑works, utilities and fleet staff pressed the council and finance team for clarity after several employees received large taxable fringe‑benefit amounts on W‑2s for take‑home town vehicles.

Employees described routine, 24/7 on‑call duties that they said require a town vehicle at home so they can respond quickly to water, sewer and street emergencies. Several said the timing and amount of taxable income they saw on their W‑2s surprised them and they want options that reduce personal financial impact without compromising response times.

Why it matters: Take‑home vehicles affect payroll reporting and withholding. The Internal Revenue Service treats commuting in some circumstances as a taxable fringe benefit; the town’s employee handbook and IRS guidance were cited during the discussion. Councilors and staff said they will seek tax‑accounting advice and refine policy options to reduce burdens while meeting legal obligations.

Workers described the operational need. A water‑department employee identified only as Eric said he was promoted in October, given a take‑home truck and received a W‑2 entry he said was $27,100 for three months: “I get my w 2 that says it's $27100 for 3 months. I don't I don't I just I just don't think anything I don't even know if the papers are filled out. Right? You see, I mean, that's that's my biggest question is, are they filled out?”

Wastewater superintendent Daniel Lockhart emphasized emergency potential: large equipment purchases are sometimes required on short notice and vendors have on occasion extended equipment on good faith; he urged arrangements that do not interrupt operations. Street‑department staff said they are often called in for signal repairs, snow clearing and other urgent tasks and said unclear tax treatment could discourage after‑hours responses.

Town staff and counsel described the legal landscape and next steps. Town Manager Barr explained the town must follow IRS rules on fringe benefits and acknowledged the policy and communication gaps that made the rollout jarring for some employees. Barr said the employee handbook contains guidance on personal use and commuting and that the town would seek tax and accounting advice to identify compliant options.

Outside legal counsel suggested practical models used elsewhere: some municipalities apply a flat per‑day commuting charge (one council member cited a $3‑per‑day example used by a referenced locality), others adjust vehicle markings and equipment so a vehicle qualifies as a non‑personal‑use government vehicle under IRS guidance, and some governments agree to cover the tax as an employer paid fringe benefit. Council asked the town manager and clerk treasurer to prepare a department‑by‑department analysis of job duties, on‑call requirements and current vehicle assignments and to consult tax counsel and auditors before returning recommendations.

No final decision was made. Councilors said they will review job descriptions and external tax guidance, and the clerk treasurer and town manager will brief the council on options and likely payroll impacts before any policy change is adopted.

Ending: Staff were asked to compile job descriptions and on‑call schedules for employees with take‑home vehicles, provide the council copies of relevant handbook language and IRS guidance cited in the meeting, and consult tax/accounting specialists to propose compliant, less disruptive alternatives.