How is standby charge calculated CRA?
If the automobile is available 12 months of the year, then 24% of the cost of the automobile is included in the employee’s income each year. When the automobile is leased by the employer, the standby charge is: 2/3 x monthly lease costs (excluding insurance) x # of months available to the employee in the…
If the automobile is available 12 months of the year, then 24% of the cost of the automobile is included in the employee’s income each year. When the automobile is leased by the employer, the standby charge is: 2/3 x monthly lease costs (excluding insurance) x # of months available to the employee in the year.Click to see full answer. Correspondingly, how is standby charge calculated?For leased cars, the standby charge is calculated as two-thirds of the annual lease costs, including sales tax. So for a leased car with monthly payments of $650, available all year, the calculation would be: 2/3 x $650 x 12, for a total of $5,200.One may also ask, how are taxable benefits calculated? Calculate payroll deductions. After you calculate the value of the benefit, including any taxes that may apply, add this amount to the employee’s income for each pay period or when the benefit is received or enjoyed. You then withhold deductions from the employee’s total pay in the pay period in the normal manner. Likewise, people ask, what is a standby charge? The standby charge is for the benefit your employee gets when your owned or leased automobile is made available for their personal use. The following information about personal use, availability and reducing the standby charge is the same whether you own the automobile or lease it.How much is a company car worth in salary Canada?So, a company vehicle should be worth about (15,098 miles x $0.54/mile) = $8,152.92 per year. To be safe, I round up to $8,500. A good rule of thumb is to value a company vehicle at $8,500/year. This assumes that you do not have to pay for any fuel, insurance, repair, maintenance, etc.
