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B6120 Formula Sheet

Standby charge
2% the cost of the automobile (GST/HST included) to the employer where the employer owns the
automobile the number of months the automobile is available to the employee in the year
OR
2/3 the annual lease payments (GST/HST included) (excluding any portion related to insurance) where the
employer leases the automobile
Reduction available to basic standby charge (If required to use auto for employment purposes and more than 50%
of distance traveled related to employment)
The reduction is calculated by applying a fraction to the base standby calculation. The fraction is calculated as A B.
A = the lesser of:
i.
Total personal kilometres driven; and
ii.
1,667 km per month in which the vehicle is available to the individual
B = 1,667 km per month in which the vehicle is available to the individual

Automobile operating expense benefit


For situations where a standby charge has already been assessed to the employee on the automobile, the operating
expense benefit is calculated as the lesser of:
i. 1/2 standby charge (only if the automobile is used more than 50% for employment purposes)
AND
ii. A prescribed amount # of personal km driven in the year
The prescribed amount is $.27/km for 2015 & 2016.

Reimbursement of Automobile Expenses


For 2015 and 2016, the prescribed limits are $0.54 per km for the first 5,000 km per employee and $0.48 per km
thereafter.

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