Paying Your Employee For The Use of Their Personal Vehicle, Per Kilometer
Employers often compensate their employees for the use of an employee’s personal motor vehicle by providing them with a car allowance or mileage allowance when they use their own vehicle for business. On occasion, an employer may choose to reimburse an employee for gasoline consumed by the employee’s own vehicle, when they use it for business. However, a per kilometer rate tends to be the preferred compensation method. A “reasonable” per kilometer rate that would be paid to a
