Create Earning for paying mileage to employees
I would like to suggest creating an earnings option to pay a per km rate to employees. This new feature would allow me to enter the # of km and the rate in the fields. Right now the only option is rate x hours or a total. I would like my employees to see the rate and the number of km i am paying them for and I can't use the hours as a substitute for km because this changes the insurable hours for reports purposes.
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Official comment
Thanks for the suggestion. We have added this as a feature request. In the interim, here's a workaround:
While the service doesn't currently allow for rate multiplied by number for things like mileage (since entering it will affect insurable hours) - here is what you can do:
- Go to SETTINGS (gear icon) -> PAY RULES and add a new earning
- Call it something like mileage @$0.55 (2018 rate) so employees will see rate paid on their payslip and set a proper GL code and taxes.
- Then in a pay run after you have approved their regular hours click the + (ADD OTHER) link at the end of the line to add another earning.
- Select your mileage code you have created and just put in the total amount.
Employee will see the amount paid and the rate. They will need to do the math backwards to confirm if they were paid for correct # of km. For example, the payslip will say:
Mileage @$0.55 - $55.00 (under earnings). They will then know they were paid $55.00 at $0.55 rate and so they were paid for 100 kms.
The automobile allowance rates for 2018 are:
- 55¢ per kilometre for the first 5,000 kilometres driven
- 49¢ per kilometre driven after that
In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel.
See CRA rates HERE
**Any amounts paid outside of the CRA prescribed rates may be taxable to the employee. Please review your scenario with your accountant or CRA to ensure you are applying the proper taxes if needed.
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