No, employees must meet certain criteria to qualify for a company vehicle. For example, they first need a valid driver`s license and a clean ticket for a period of time. A Driver Safety Directive sets out specific rules for people who use cars from a company or organisation. They often require regular vehicle maintenance, seat belts and prohibit the use of mobile phones, alcohol and medications that impair the ability to drive. Annual Leasing Assessment – Determine the fair value of the vehicle by multiplying the annual rental value by the percentage of miles driven for personal use. In the event of an accident, contact the human resources department immediately. They will go to the insurer. Follow legal guidelines for exchanging information with other drivers and report the accident to local police if necessary. Do not assume any guarantee of payment or assume any responsibility without the company`s permission. Employees can qualify for a company vehicle if they travel miles or more per year for work purposes, need a service vehicle for their day-to-day work, or if they need a vehicle advantage. The penny-per-mile rule – multiply the number of personal miles that are driven by the standard mile rate of $0.58 per mile (stand 2019). If you do not provide fuel, reduce the rate by 5.5 cents. A company vehicle directive or enterprise vehicle use agreement defines employees eligible for a vehicle in the company`s fleet.
In addition, the qualification requirements for a company car, the basic rules that employees must follow for the use of company vehicles and disciplinary measures for the misuse of vehicles are presented. In order to qualify for a company vehicle, employees must complete a form and file a copy of their driver`s licence. Employees can only drive a company car if they have a valid driver`s license and a clean driver`s license for at least [X years]. To use the actual cost method, you must determine the cost of operating the vehicle for the portion of the total use of the vehicle for business purposes. These include gas, oil, repairs, insurance, etc., which are intended for the portion of miles for commercial use. General Assessment – This refers to the price the employee would pay to pay for the vehicle during the same period at the same geographic location. When an employee uses a corporate vehicle for personal use, it is a taxable ancillary benefit. Personal use includes commuting to and from work, running groceries or the possibility for a spouse or family member to use the vehicle.