just per-klick gross profit margin http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/bnfts/tmbl/llwnc/nntx-eng.html Businesses > Payroll > Benefits and remunerations > motorcar and motor fomite each(prenominal)owances Reasonable per- kilometer compensation If you pay your employee an allowance base on a per-kilometre range that we allot middling, do non calculate CPP contributions, EI premiums, or income revenue enhancement. The type of vehicle and the driving conditions usually mend whether we ensure an allowance to be reasonable. The per-kilometre rank that we usually consider reasonable argon the amounts confident(p) in section 7306 of the Income valuate Regulations. Although these identifys represent the utmost amount you spate descend as business expenses, you can use them as a guideline to determine if the allowance paid to your employee is reasonable. We consider an allowance to be reasonable if all the following conditions hold: The allowance is based only on the number of business kilometres goaded in a year. The rate per-kilometre is reasonable. You did not reimburse the employee for expenses link up to the very(prenominal) use of the vehicle.
This does not apply to situations where you reimburse an employee for toll or ferry charges or auxiliary business insurance, if you have fit(p) the allowance without including these reimbursements. When your employees complete their income tax and benefit return, they do not include this allowance in income. Reasonable allowance rates For 2012, they be: 53¢ per kilometre for the jump 5,000 kilometres driven; and 47¢ per kilometre driven after that. In the Northwest Territories, Yukon, and Nunavut, there is an particular(a) 4¢ per kilometre for travel. For prior-year rates, put through Automobile allowance rates. cognomen Modified: 2012-01-11 1 of 1 1/27/2012 2:19 PM If you want to get a full essay, order it on our website:
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