Happy New Year! We hope the holiday season brought you joy and some time to rest.
With each new year, change is inevitable.
If you have a nanny that drives their own vehicle for work purposes or are a nanny that drives as part of your job, please note that the CRA has raised the government reimbursement rate.
As of January 1st, 2023, the limit on the deduction of tax-exempt allowances paid by employers to employees who use their personal vehicle for business purposes in the provinces will increase by seven cents to 68 cents per kilometre for the first 5,000 kilometres driven, and to 62 cents for each additional kilometre.
It is important to track kilometres driven for work purposes and submit them to your employer at least once per month. There are some great apps available such as MileIQ, Everlance, Triplog or you can use a good old-fashioned notebook you store in your glovebox to track your kilometres.
Remember, that unless you have an agreement set up, it is the responsibility of the employee to get themselves to and from work and mileage shouldn’t be tracked unless you are driving for work purposes.
All the best for a safe and healthy 2023!
The Nanny Solution Team
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