The CRA therefore permits deduction-free reimbursements, as if these were top-line business expenses.ĭrivers benefit from reimbursement programs because it simplifies their workload. Just as a carpenter needs to bring a saw to work, so is a car a necessary business expense for many workers. The CRA acknowledges that many employees use their personal vehicle for business purposes. These contributions need not be deducted from reasonable reimbursements. Employers in Canada normally deduct CPP, EI, and income tax from paycheques. If you are a business owner in Canada, and you reimburse your drivers at the CRA mileage rate, you do not need to deduct anything from the repayment. What do these rates mean for companies and drivers? In both 20, the ¢4 Northern bonus was the same. The 2022 ¢2 increase is the first rate hike in two years, and the most significant since 2019, when it increased by ¢3 over 2018. ¢61 is the recommended rate per kilometre for the first 5,000 kilometres driven the recommendation is ¢55 per kilometre after that.Īn additional ¢4 per kilometre is recommended in the Northwest Territories, Yukon, and Nunavut. This year, the CRA automobile allowance rate is ¢61 per kilometre. An example of this is travelling between work sites.The Canada Revenue Agency (“CRA”) has updated their per kilometre recommended reimbursement rates for 2022.
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