Shawnee Love •
April 21, 2017
I was recently asked for my opinion on vehicle allowances. It was an easy one to answer because I am a big fan of them for anyone who drives regularly. In my experience, vehicle allowances are good for:
- Reducing the administrative burden of preparing and processing kilometer tracking reports,
- Making company driving expenses predictable each month, and
- Getting additional tax free money in the hands of an employee.
Another reason I like vehicle allowances, is because employers can make the allowance contingent upon certain guidelines such as the employee:
- Having adequate insurance,
- Providing proof of satisfactory driving record, and
- Having an appropriate car (i.e., one that represents the employer well).
We hope you’ll come back next week for our thoughts on a company’s responsibilities when employees drive personal vehicles for work.