Vehicles - Expenses
Rural and Suburban Mail Carriers (RSMC) continue to use their own vehicle and receive vehicle expenses under the collective agreement between CUPW and Canada Post.
Vehicle expenses, combined with wages, are considered to be annual pay.
See Article 33.01 (b).
How are your vehicle expenses calculated?
Vehicle expenses are:
· 42 cents per kilometre for the first 5,000 kilometres
· 36 cents per kilometre for additional kilometres
Canada Post establishes the number of kilometres for each route. This number is set out in Schedule A of the corporation's Mail Transportation and Delivery Agreement.
What happens if your route grows?
RSMC receive 44 cents per additional kilometre if a route grows by more than 5 per cent (i.e. 5 per cent of the number of kilometres in Schedule A). See Appendix A: Changes to Route.
How do you claim vehicle expenses on your income tax form?
Canada Post will send a Declaration of Conditions of Employment form (T2200) for income tax purposes each year. This form will state the number of kilometres you drove your vehicle for work and how much the corporation paid you for driving this distance (i.e. 42 cents per kilometre for the first 5,000 kilometres, 36 cents per kilometre for additional kilometres). The amount the employer pays you is called an allowance. You must complete the T2200.
If your vehicle expenses are less than what you receive on an annual basis from the corporation, there is no need to provide receipts or claim your vehicle expense allowance as taxable income.
In most cases, the allowance that the employer provides will not cover all your costs. You should also fill in a Statement of Employment Expenses form (T777), which enables you to calculate your allowable motor vehicle expenses. Be sure to list the allowance that Canada Post provides when calculating allowable motor vehicle
Note: You can only claim the expenses related to your work at Canada Post. For example, if you drive 200 kilometres a week but only 100 kilometres for work, you get to claim 50% of your expenses.
Don't forget that you need to keep receipts for all vehicle expenses.
What about the payment of $1,200 or more for being required to use a certain type of vehicle?
Canada Post mailed a waiver form to all RSMC who received the payment of $1,200 or more. The corporation asked RSMC to sign the waiver and send it back to Human Resources at Canada Post.
The waiver allows anyone that signed it to receive the vehicle expense allowance without being taxed on each pay cheque. It does not waive the tax paid on the portion of the $1,200 or more you receive on each pay cheque.
At income tax time, your vehicle expense allowance and the payment of $1,200 is considered to be taxable income. You have to claim all your vehicle expenses and include receipts to reduce your taxable income by filling out the Statement of Employment Expenses form (T777).
How do you get a T777 or other income tax information?
The guide on Employment Expenses 2004 (T4044), T777, T2200 and other tax-related information can be obtained by visiting
http://www.cra-arc.gc.ca/E/pub/tg/t4044/README.html or by calling 1-800-959-2221.
You can get other forms by visiting
http://www.cra.gc.ca/forms or calling the above number.
Vehicles - Type
The collective agreement says you must use the type of vehicle stipulated in Schedule A of the Mail Transportation and Delivery Agreement that was applicable to the route on December 31, 2003. See article 32.01.
If you were being paid an allowance for using a certain type of vehicle prior to the collective agreement coming into effect, you will continue to receive that allowance.
If the corporation alters your route under
Article 11 and requires you to use a specific type of vehicle, you're entitled to the amount set out in Appendix A ($1,200 or more). This is the only case where you will receive this payment.
Note: You are meeting the corporation's requirement for a certain size of vehicle if you have a larger vehicle.
If you believe you need a larger vehicle than the type of vehicle required by the corporation, please ask your union representative to help you make your case with the employer.
Vehicles - Insurance
You must have Commercial Liability Insurance Coverage of at least $1,000,000. Also, you have to provide proof of your insurance coverage to Canada Post. See Article 32.02.