According to CarsDirect, mileage reimbursement up to the federal mileage reimbursement rate is not taxable, but a standard car allowance is considered to be taxable income. If an employee is not reimbursed for mileage, he or she is allowed to list that amount as a deduction on his or her annual tax return.Continue Reading
If an employee does not drive a company vehicle, he or she may be eligible to be reimbursed for wear and tear on his or her car. When a company offers a car allowance, it is usually in one of two ways.
CarsDirect states that a standard car allowance is a set amount given to an employee each pay period by the employer. This amount is meant to be used to cover car expenses and is in lieu of the company furnishing the employee with a company vehicle. This type of car allowance is usually considered to be taxable income, and the employee will have to declare it on his or her income tax return and pay taxes on it.
Instead of a set car allowance, come companies choose to reimburse the employee for the actual miles driven. As of 2015, the federal mileage reimbursement rate is 57.5 cents per mile for business, 23 cents per mile for medical or moving purposes and 14 cents per mile while driving for charitable organizations, as stated on the IRS website. This amount is not considered to be taxable income.
The current family allowance, or Child Benefit rate, in the United Kingdom is £20.50 per week for the first child and £13.55 per week for each additional child, according to the Government of the United Kingdom. These rates are effective until April 2015.Full Answer >
Common car allowance policies allow for either fuel or mileage reimbursement, discount or subsidy. Many policies include parking passes or reimbursement for any parking fees incurred. It is common for a company to either lease and provide a vehicle, allow the employee to use one from their fleet or offer reimbursement for employee-owned vehicle purchases. Additionally, many companies also outright pay or reimburse the driver for the cost of the vehicle's insurance and routine maintenance.Full Answer >
The employee Social Security tax withholding rate is 7.65 percent as of 2015, according to the Social Security Administration. That number is matched with an employer contribution of 7.65 percent. The rate includes the Social Security portion, which is 6.20 percent, and the Medicare portion, which is 1.45 percent.Full Answer >
To calculate the social security tax percentage as of 2015, add the 6.2 percent rate for the employer and the 6.2 percent rate for the employee, which totals 12.4 percent of wages, states the Internal Revenue Service. Social Security tax has a wage base limit of $118,500 for 2015 earnings.Full Answer >