Survey – Mileage Reimbursement Practices 2013 – Guest Blog – AlternaSolutions

AlternaSolutions Inc. recently conducted a survey regarding market practices with respect to mileage reimbursement for employees who use their personal cars for business purposes.

We are pleased to present the results of our survey.

We approached companies with which we have worked, all of which operate in the Montreal area and in some cases nationally. Our target companies, and the 20 actual respondents, are from a wide range of business sectors, and so the results are quite general. Our target companies are of varying sizes, both in terms of revenues, assets and numbers of employees, with the largest ones having over 100 employees, and the smallest having about 10.

Keep in mind that this is a report that expresses the results of the current trends with regards to mileage reimbursement practices and that it is up to each company to be knowledgeable of and comply with the government’s regulations on automobile allowance rates.  Canada Revenue Agency and Revenu Québec allow tax deductibility of mileage reimbursement for 2013 at 0.54$ per kilometer for the first 5,000km driven and 0.48$ per kilometer driven after to employees using their personal vehicle for business purposes. For more information on previous years’ allowance rate please go to:

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/bnfts/tmbl/llwnc/rts-eng.html

The government’s rate is reviewed annually and the Department of Finance adjusts the rate as it deems appropriate. It is also important to note that the reimbursement rate includes an allowance for the key cost components of owning and operating an automobile, such as depreciation, financing, insurance, maintenance and fuel costs.

The lowest rate of reimbursement is $0.40 per kilometre, and the highest rate of reimbursement is $0.56 per kilometre. The reimbursement rates reported in this 2013 survey are expressed in cents per kilometre travelled.

We would like to thank all organizations that participated. Margot Uson AlternaSolutions Inc. muson@alternasolutions.com 514-694-930

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About the Author: Dejan Ristic

In 2004, I founded Exceleris. In addition to managing all recruitment aspects of Exceleris, I have consulted (as CFO or in similar roles) with a number of technology companies (both publicly traded and venture funded start-ups)....