TOT being removed in exchange for increased salary. Help.

Forums › Off topic › TOT being removed in exchange for increased salary. Help.

1 | 2 | 3 | 4 | 5 | 6 | 7 | ... | 8

6733 posts

Uber Geek
+1 received by user: 2926

Subscriber

#1561507 29-May-2016 09:09

$10,000 wouldn't come close to paying for 30 -40,000km use of a private vehicle.

"Some corporate managers feel an employee reimbursement program costs less than offering company-provided vehicles. Shifting the burden of the company vehicle program to employees may seem, at first, to be the ideal way to accomplish cost reductions. But, a closer examination shows this may not be the case. If your company spends less by going to driver reimbursement, it is because your employees are shouldering the hidden costs. "

SheriffNZ

677 posts

Ultimate Geek
+1 received by user: 322

#1561537 29-May-2016 09:33

Bung: $10,000 wouldn't come close to paying for 30 -40,000km use of a private vehicle.

"Some corporate managers feel an employee reimbursement program costs less than offering company-provided vehicles. Shifting the burden of the company vehicle program to employees may seem, at first, to be the ideal way to accomplish cost reductions. But, a closer examination shows this may not be the case. If your company spends less by going to driver reimbursement, it is because your employees are shouldering the hidden costs. "

I agree. My old employer did this with cell phones. While we got overly generous allowances, if we had to make an international call we would be billed for it and we could claim it back, but often it wasn't worth the effort. Also, when I left that employer, I got stung with earlier contract termination charges from my phone provider.

To be fair, this isn't in the same league as the OP's issue.

Kyanar

4089 posts

Uber Geek
+1 received by user: 1684

ID Verified

Trusted

#1561560 29-May-2016 10:41

alasta:

Employment law in Australia tends to be more employer friendly in a lot of areas, so Australian owned companies often try to do things in NZ that are outside of what is allowed in this jurisdiction.

You're kiddig right? No, it really isn't more employer friendly. In fact it's far, far less friendly to employers than NZ is. Right wing Aus governments have been trying to pass NZ-style employment law for decades, and it gets defeated by the mega-unions every time.

UHD

655 posts

Ultimate Geek
+1 received by user: 298
Inactive user

#1561576 29-May-2016 10:50

Ask the company your employer contracts the car from to give you a price. Add on an amount you calculate for fuel (including personal use) and an amount for average annual car rental and give your employer that figure. That way nothing will change, you will still have a lease vehicle that will be updated every few years so you won't have to worry about maintenance and you can still use it for whatever you want.

Handle9

11925 posts

Uber Geek
+1 received by user: 9675

Trusted

Lifetime subscriber

#1561583 29-May-2016 11:08

UHD:

Ask the company your employer contracts the car from to give you a price. Add on an amount you calculate for fuel (including personal use) and an amount for average annual car rental and give your employer that figure. That way nothing will change, you will still have a lease vehicle that will be updated every few years so you won't have to worry about maintenance and you can still use it for whatever you want.

It's not even close to being a fair value. In this example if you leave the role you are still responsible for the lease. Car leases are pretty punitive to return early. There is also the insurance liability and general hassle factor of having to deal with this all yourself that you need to be compensated for as well as fuel fluctuations etc.

Generally allowances don't get reviewed as part of your pay reviews so you end up slipping further and further behind as costs go up each year.

mudguard

2327 posts

Uber Geek
+1 received by user: 1250

#1561636 29-May-2016 13:07

I have spoken to my lawyer who is going to to recommend someone who specializes in employment law.

As others have alluded, it's not quite as straight forward as just getting the lease rate, and fuel total, it's the insurance, lease liability if I'm made redundant/go elsewhere etc.

The deadline is the 1st of August but hopefully they can give us a figure at some point, well by the time I've worked out if it will be better or worse.

Mighty Ape

Shop now at Mighty Ape (affiliate link).

UHD

655 posts

Ultimate Geek
+1 received by user: 298
Inactive user

#1561748 29-May-2016 15:39

Add on the cost of insurance and a clause regarding early lease termination then. It isn't rocket science...

SepticSceptic

2263 posts

Uber Geek
+1 received by user: 779

Trusted

#1562085 30-May-2016 10:07

For the next month or so, itemise your travelling in a log book. Be meticulous in this. This could be valuable at negotiation time.

Or even smart-phone camera shots of the odometer.

Or you could use your smart-phone GPS tracking to confirm when and where you are, and differentiate between personal and company mileage.

Bear in mind though - travelling from home to work office, and from work office to home is generally considered as PRIVATE mileage. However, if you travel from home to a customer site, that is considered work travel.

MikeB4

MikeB4
18775 posts

Uber Geek
+1 received by user: 12766

ID Verified

Trusted

Subscriber

#1562089 30-May-2016 10:17

My wife was in this situation a few years back, she had a full private use company car and they decided to change to reimbursing as opposed to supplying. She was paid $20,000 per year vehicle allowance plus $0.70 per kilometer. The deal was very much advantageous to her and to the company. She has declined company cars for this type of arrangement since. She buys a new car every 3 year.

Here is a crazy notion, lets give peace a chance.

wellygary

8810 posts

Uber Geek
+1 received by user: 5287

#1562090 30-May-2016 10:18

Ask your boss to get the company accountant to itemise all the expenses that have been attributed to the current vehicle ( both Cap and Op) for the last 5 financial years.

timmmay

20858 posts

Uber Geek
+1 received by user: 5350

Trusted

Lifetime subscriber

#1562172 30-May-2016 11:21

This seems ridiculous. Definitely seek professional advice.

My gut would be $40K to buy the vehicle, $4K per year for maintenance, $2K for insurance, $30K per year for fuel. Figure a car lasts three years at that level. So it might be $48K per year additional salary required if they require you to provide a vehicle, and I'm sure there will be things I haven't thought of.

AliExpress

Shop now on AliExpress (affiliate link).

MikeB4

MikeB4
18775 posts

Uber Geek
+1 received by user: 12766

ID Verified

Trusted

Subscriber

#1562204 30-May-2016 11:42

timmmay:

This seems ridiculous. Definitely seek professional advice.

My gut would be $40K to buy the vehicle, $4K per year for maintenance, $2K for insurance, $30K per year for fuel. Figure a car lasts three years at that level. So it might be $48K per year additional salary required if they require you to provide a vehicle, and I'm sure there will be things I haven't thought of.

$20k PA plus $0.70 per KM more than adequately covers it.

EG If my wife drives to Napier on business that is about 700km return for which she will be paid around $500, it cost nowhere near that to do the trip.

Here is a crazy notion, lets give peace a chance.

dolsen

1483 posts

Uber Geek
+1 received by user: 319

Trusted

Lifetime subscriber

#1562209 30-May-2016 11:45

MikeB4:

timmmay:

This seems ridiculous. Definitely seek professional advice.

My gut would be $40K to buy the vehicle, $4K per year for maintenance, $2K for insurance, $30K per year for fuel. Figure a car lasts three years at that level. So it might be $48K per year additional salary required if they require you to provide a vehicle, and I'm sure there will be things I haven't thought of.

$20k PA plus $0.70 per KM more than adequately covers it.

Is that 20K as a contractor where you can directly offset against the costs before getting taxed, or, as an employee pre tax? As previously mentioned, take into account what this does for any benefits / WFF and other tax implications this may have.

mudguard

2327 posts

Uber Geek
+1 received by user: 1250

#1562264 30-May-2016 12:25

MikeB4:

EG If my wife drives to Napier on business that is about 700km return for which she will be paid around $500, it cost nowhere near that to do the trip.

I drive 40,000k per year(excluding rental cars, which aren't affected). Of that personal is about 100km per week.
The IRD figure is based on not exceeding 5000k pa so beyond that I don't know. I'll hopefully have an appointment this week as I'm not back home for a few weeks.

BlinkyBill

1443 posts

Uber Geek
+1 received by user: 1100
Inactive user

#1562344 30-May-2016 13:56

Kyanar:
alasta:

Employment law in Australia tends to be more employer friendly in a lot of areas, so Australian owned companies often try to do things in NZ that are outside of what is allowed in this jurisdiction.

You're kiddig right? No, it really isn't more employer friendly. In fact it's far, far less friendly to employers than NZ is. Right wing Aus governments have been trying to pass NZ-style employment law for decades, and it gets defeated by the mega-unions every time.

I work for an Australian company, in NZ. In fact I am the NZ CEO. The stuff they can do in Aussie compared to the stuff we can do here (as employers) is unreal in comparison. NZ is much more employEE-friendly in comparison.

I have a few staff I would like to just fire, but I can't (I have go go through a performance-management charade). In Aussie I could just do it. Flame on.

1 | 2 | 3 | 4 | 5 | 6 | 7 | ... | 8