Probably I’m missing something here, but I guess there are additional costs for example SS and Medicare. But this is not my point. I'm focus on the question whether the S Corp must include always the benefit on Form W-2 or there are other options.

My point is that personal use of a company vehicle is not qualified business use, even though the company properly reports employee-shareholder.

In my example the 20% personal use of the vehicle expenses is neither tax deductible for the S Corp nor the employee-shareholder. It looks similar whether the employee-shareholder owns the vehicle and does not request expenses reimbursement from the S Corp. Nobody takes income or expenses.

Thank you for sharing your point of view.