My Nanny uses her own car for driving my children. How much do I need to reimburse them?
If your Nanny is driving the children to school or activities, or running errands etc, you should reimburse them for gas and wear and tear. Driving to and from work is at the Nanny's own expense, but as soon as they're driving because you asked them to, it must be reimbursed.
There are minimum requirements for gas reimbursements for employees, set and published by the CRA. Every January, the CRA updates their website regarding compensation entitlement for employees that drive their own vehicle for work. The current rate for 2024 is $0.70 per kilometre for the first 5,000 kilometres driven and $0.64 per kilometre driven after that. It's helpful to keep an eye on the CRA website every year around January so you can keep up to date with the changes.
Click the link below for the government info page to learn more:
Government of Canada Motor Vehicle Allowance
The Nanny is responsible for keeping track of their kilometres and remitting them to you monthly. They will keep a detailed log of all of the trips they take with your children for their work, and you should calculate the rate and reimburse them for it. To make this process easier, we recommend that you check out this free app: https://quickbooks.