I think you mean to be using "2% Shareholder" as your measure for the employee that has a taxable fringe benefit from using this 100% company-owned vehicle for personal needs.

The corporation owns the car, and covers all costs, and gets the 100% tax deduction from it. Separately, the employee either Pays for the value of their personal use, or is Taxed on the value of that use.

Think it through first with no taxable fringe benefit to anyone.

Now, add into your mix the personal use, which is like a payroll Addition + Deduction. The amount as expense for taxable fringe benefit is Added to payroll, but the same Value is Deducted from payroll, too, to avoid paying it out as real funds. They already got the benefit of the use, so you do not want more funds paid out.

The difference is the taxable event's taxes. Not the Vehicle Benefit value; that isn't in the financial reporting twice.