How do you distinguish between normal mileage and work mileage? Specifically, how do you distinguish between “home-to-work/work-to-home” commuting and “work-to-site/site-to-work” commuting?
The question above was posted on LinkedIn and I figured it would be important for Quino readers to know. Not to mention, I have dealt with this problem myself when recording my mileage.
Devesh Dwivedi on LinkedIn says, “If the employee goes to a client site and the mileage is less than normal commute (normal commute being, his home to your office/ primary place of him employment) then there’s no reimbursement however, anything traveled more than the normal commute should be reimbursed.
For example, if the employee visits a client 10 miles from his home and does not come in to office that day, the 20 miles roundtrip drive of the day will not be reimbursed for (being under the normal commute 40miles round trip in your case) however, if the employee visits the client plus comes at work then miles over normal commute should be reimbursed (20 miles in this case).” http://www.linkedin.com/answers/hiring-human-resources/personnel-policies/HRH_PPO/277363-230164?searchIdx=0&sik=1258516961637&goback=%2Easr_1_1258516961637
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In addition, in my situation, I was using my car to get to and from networking events. Some days I would go to the networking event from home and then go to the office after the networking event. Adhering to the processes set by my company, I would subtract 14 kilometres (my daily commute to work from home) from the kilometres accumulated to the networking event and back to the office. The Calculation would be 30 kilometres (mileage to networking event from home) + 40 kilometres (mileage from networking event to office) – 14 kilometres (daily commute to work from home) = 56 kilometres; therefore, after my calculation I am entitled to 56 kilometres for reimbursement.
As always, consult your accountant to be informed of your company’s specific tactics when addressing this issue. OR if you want to consult the Fair Labor Standards Act (FLSA) go to http://www.opm.gov/oca/worksch/HTML/travel.asp#commtime.
-Ashton Byrne, Marketing Coordinator for Quino Solutions Inc.
We, at Quino, have developed our software to accommodate to the government’s regulations according to vehicle use for business purposes. Therefore, because we serve to protect our clients from audits with either the IRS or CRA, we figured an update would be nice.
The Minister of Finance Jim Flaherty announced, late last year, some key points for automobile deduction limits and expense benefit rates for businesses:
Capital Cost Allowance (CCA) stays at $30000 for purchases after 2008
The limit of deductible leasing costs have remained at $800/month
Maximum allowable interest deduction for borrowed or purchased after 2009 remained at $300/month
The tax exempt, for employees using their personal car for work, remained at a 52 cents limit up to 5000km and 46 cents for any additional kilometres. If you live in the Yukon Territory, Northwest Territories, or Nunavut that tax exempt is 56 cents up to 5000km and 50 cents for any additional kilometres. The personal portion of automobile operating expense paid by employers remained at 24 cents per kilometre
We hope that you found this update helpful and beneficial. If you want to stay informed about “the need to know” for the government’s automobile limits and rates for businesses follow us at…
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-Ashton Byrne, Marketing Coordinator
Note: The deduction limits and expense benefit rates above are taken directly from the Canadian Government’s website. If you need further clarification of any point above contact the government directly. http://www.fin.gc.ca/n08/08-114-eng.asp
