Driving Nannies and Caregivers
Are you thinking of hiring a driving nanny or caregiver for your family? This can be a great option to help with running errands, taking to appointments/ activities, doing pickups and drop offs, and more. While most families provide a vehicle for their caregivers to use, other families rely on the caregiver to provide a vehicle. In this scenario Diamond recommends fairly compensating your caregiver for their gas and mileage. How do you do this? The CRA has published automobile allowance rates, which makes it easy for employers to calculate and reimburse for mileage. This information is updated on a yearly basis.
The current rates in Canada for 2018 are as follows:
55¢ per kilometre for the first 5,000 kilometres driven; and
49¢ per kilometre driven after that.
In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.
Further detail on automobile allowance rates can be found here http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/bnfts/tmbl/llwnc/rts-eng.html
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