Mileage Reimbursements

[Tia1975]

Good afternoon

I would value some advice please on travel for staff who work in the field and use their own vehicles to travel to their place of work which happens to be a different place each day of the week but in the same vicinity.

Our company pays R4/km to cover fuel, and wear and tear and this is a separate payment made to each employee at the end of every month.

What happens if the employee has car trouble whilst travelling to or from their place of work or if they are involved in a motor accident? Should our company add a clause to our insurance for employees who use their own vehicles for business use? Do we get AA membership for them? What liability and responsibility rests on the company and what remains with the employee? It will cost the employee a lot to change their insurance, should they even have insurance, to business insurance.

Would love to hear thoughts and advice on how best to facilitate this function as we would like to have peace of mind that the employee is covered on all fronts whilst in our employ.

Thank you.

Tia

 

[Aghori]

R4/km is daylight robbery. The standard rate that I have seen most big companies pay is R7/km.

 

[Tia1975]

Hi Shaun. We are a non-profit and are not a big company.

 

[SauRoNZA]

R4/km is daylight robbery. The standard rate that I have seen most big companies pay is R7/km.

I would love to see where this was happening.

AA rates aren't even at R4/km and most companies stick pretty firmly to those.

Considering the average car costs R1/km or less in fuel to run the R4 seems more than adequate to cover service, insurance and maintenance as well.

It's been a while but the last big company (one of the biggest in SA) paid R2.5 per km from what I remember.

***

The R4 is more than inline with SARS as well even for the most expensive vehicles.

http://www.sars.gov.za/Tax-Rates/Employers/Pages/Rates-per-kilometer.aspx

In fact at R4 you should be making a tidy profit per kilometer traveled.

 

[Kosmik]

Look up the AA rate for your car, and then with that in hand discuss with your company.

 

[Awesum]

The rate per km is R3.55 for the 1st 15K kms.

 

[Tia1975]

Thank you for the replies. Can anyone help me with this too please:

Should our company add a clause to our insurance for employees who use their own vehicles for business use? Do we get AA membership for them? What liability and responsibility rests on the company and what remains with the employee? It will cost the employee a lot to change their insurance, should they even have insurance, to business insurance.

 

[Hemi300c]

Thank you for the replies. Can anyone help me with this too please:

Should our company add a clause to our insurance for employees who use their own vehicles for business use? Do we get AA membership for them? What liability and responsibility rests on the company and what remains with the employee? It will cost the employee a lot to change their insurance, should they even have insurance, to business insurance.

Under the company policy ensure you have the following clause included for the number of employees:- Contingent Liability with a limit up to R2.5mil. This covers third party damage caused by an employee using their vehicle for business but isn't insured for it.

Their own vehicle should be insured for business/professional use depending on they type of business you run. Also suggest to the employees they check their policies and ensure they are covered just to CYA.