Canadian Employee Relocation Council (CERC) Survey of Corporate Reimbursement Rates for Personal Vehicles when used for Business Travel
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1 Canadian Employee Relocation Council (CERC) Survey of Corporate Reimbursement Rates for Personal Vehicles when used for Business Travel January 28, 2016
2 Survey of Corporate Mileage Reimbursement Rates Summary This on line survey was conducted from January 7-28, The purpose of the survey was to gather current rates of reimbursement to employees when using personal vehicles for corporate travel. The last CERC survey on reimbursement rates was conducted in Results from the 2013 survey are shown in (parenthesis) throughout the report. A total of 35 organizations participated in the survey. All but one of the participating organizations indicated that they have a reimbursement policy for employees when using personal vehicles for business travel. The rates of reimbursement reported in this survey are expressed in Canadian dollars in cents per kilometre travelled. The lowest rate of reimbursement is between $0.34 and $0.36 per kilometre. The highest rate of reimbursement is between $0.55 and $0.57 per kilometre, unchanged since The average rate of reimbursement in 2016 is $0.51 per kilometre, an increase of $0.02 since CERC 2016 Travel Reimbursement Survey Page 2
3 About the Canadian Employee Relocation Council The Canadian Employee Relocation Council (CERC) is a not-for-profit organization dedicated to removing barriers that restrict mobility and deployment of human capital, which are vitally important to Canada s future prosperity. Established in 1982, the Council represents the interests of its members on workforce mobility matters. Many of the Council s members are listed in Canada s Financial Post Top 500. Copyright This document or any part there of, may not be reproduced, stored in a retrieval system or transmitted in any form or by any means without the express prior written consent of the Canadian Employee Relocation Council Canadian Employee Relocation Council (CERC). All rights reserved. Canadian Employee Relocation Council 180 Dundas Street West Suite 1506 Toronto, ON M5G 1Z CERC (2372) Leadership for Workforce Mobility CERC 2016 Travel Reimbursement Survey Page 3
4 Participating Organizations Air Liquide Canada Amec Foster Wheeler Aritzia Arpac Storage Systems Bank of Canada BDO Boehringer Ingelheim (Canada) Ltd. Cargill City of Edmonton City of Moose Jaw Cofely Fabricom Inc. Domtar Enbridge Inc Farm Credit Canada Fluor Canada Ltd. Glencore Nickel Great River Creative Husky Energy IBI Group Ingersoll Rand Ontario Power Generation PCL Construction RBC Scotiabank SNC-Lavalin inc. Stantec Consulting Ltd. Strongfield Technologies Suncor Energy Inc. TD Bank Teck Resources Limited Teledyne DALSA Treasury Board of Canada Secretariat UBC Vermilion Energy Inc. CERC 2016 Travel Reimbursement Survey Page 4
5 1. Organizations with a Reimbursement Policy Of the 35 organizations participating in this survey, all but one report having a policy in place to reimburse employees when personal vehicles are used for business purposes. 2. Rate of reimbursement cents per kilometre travelled Rates of reimbursement have increased since 2013 as noted in the table below, 2013 rates are noted in parenthesis. The average rate in 2016 is $0.51 per kilometre traveled an increase of two cents since the last survey in In 2016, 33 per cent of organizations reimbursed employees at a rate of between $0.51 and $0.54 per kilometre compared to 40 per cent in In 2016, 80 per cent of organizations have a rate above $0.49 per kilometre. Rate of reimbursement (2%) % (2%) % (5%) % (5%) % (7%) % (7% ) % (16%) % (40%) % (16%) % (0%) % (0%) CERC 2016 Travel Reimbursement Survey Page 5
6 3. Rates of increase Over the past 12 months two thirds of organizations report no changes have been made in the rate of reimbursement, 11 per cent report the rate has been increased and 22 per cent report that the rate has been decreased. Of those organizations (11%) that have made an increase, 75 per cent report the rate of increase at $0.01. One organization reported the rate increased by $0.06 Of those organizations reporting a decrease (22%) five reduced the rate by $0.01; two reduced the rate by $0.02 and one reported a $0.03 reduction. In the coming year, 77 per cent of organizations, similar to 2013, report that they do not expect to make any adjustment to the rate of reimbursement. In the two organizations expecting to increase the rate, it will be by no more than $0.02. For the four organizations expecting to decrease the rate it will be by one to two cents. 4. How rates are reviewed Less than one half of the organizations have a regular process in place to review the rate of reimbursement. As regular part of policy review 42% (47%) Ad-hoc 25% (19%) Other 33% (34%) 5. When rates are reviewed Fifty seven per cent of participating organizations indicate that rates are reviewed on an annual basis. Of those organizations that do not review on an annual basis, several report following the amount of allowance reimbursement as published by Canada Revenue Agency (CRA). CERC 2016 Travel Reimbursement Survey Page 6
7 Other participants report adjusting rates as deemed necessary and in accordance with overall corporate travel policy. CERC 2016 Travel Reimbursement Survey Page 7
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