Car Allowance

[Obey_my_dog]

Semicon industry paying 1.1K to 1.2K for service/install engineers.

 

But on a serious note, car allowance is not a topic worth discussing if it is subject to income tax.......to the employee its as good as just being lumped into his basic pay.

 

Just curious how many of the people getting car allowance is not having their car allowance calculated as their income and taxed? Raise hand... ;P

 

 

Edited October 9, 2015 by Obey_my_dog

[13177]

If you need to park at expensive carpark to meet your customer often, car allowance below $1k is consider low lo. Cause the parking fee alone can kill you liao.

[flashbang]

Car allowance mostly to cover your car expenses. If can cover your installment, that's a bonus...

[13177]

Car allowance mostly to cover your car expenses. If can cover your installment, that's a bonus...

Think many car allowance can cover a huge part of your instalment.

[serenade]

Car allowance mostly to cover your car expenses. If can cover your installment, that's a bonus...

 

There are 2 types of car allowance given to staff :

 

1. Senior staff who are entitled to a company car where everything is covered by employer. Including insurance and petrol and parking. To streamline process, an all in allowance typically of $3k +/- is given as part of salary to all who are eligible and the car perk removed. Those who want to drive, go buy and run own car. Those who rather save, take public transport and pocket the allowance to spend on holidays. This is a replacement for the days when employees are free to choose a car up to a limit and employer pays for all running expenses.

 

2. Sales and support staff who are entitled to claim mileage at fixed rate per km, and parking fees as they meet clients frequently. Car depreciation and maintenance is your own. An allowance is given because of the difficulty to submit, track and process the claims of the staff. Companies give a fixed rate and the staff have to manage petrol consumption, and parking charges to stay within allowance. Do it well, and can pocket the difference. The alternative is for staff to leave car at office and claim taxi fare with receipts instead.

[flashbang]

Think many car allowance can cover a huge part of your instalment.

See how much you have to run around loh. Normal petrol bill maybe 300, cos you run around it becomes 500. Add in parking of 100 a month for official work. Don't forget your own season parking at home, another 90. Road tax, insurance, also around 200 a month.

 

 

Total up 900 liao, haven't count your car cost and maintenance.

 

There are 2 types of car allowance given to staff :

 

1. Senior staff who are entitled to a company car where everything is covered by employer. Including insurance and petrol and parking. To streamline process, an all in allowance typically of $3k +/- is given as part of salary to all who are eligible and the car perk removed. Those who want to drive, go buy and run own car. Those who rather save, take public transport and pocket the allowance to spend on holidays. This is a replacement for the days when employees are free to choose a car up to a limit and employer pays for all running expenses.

 

2. Sales and support staff who are entitled to claim mileage at fixed rate per km, and parking fees as they meet clients frequently. Car depreciation and maintenance is your own. An allowance is given because of the difficulty to submit, track and process the claims of the staff. Companies give a fixed rate and the staff have to manage petrol consumption, and parking charges to stay within allowance. Do it well, and can pocket the difference. The alternative is for staff to leave car at office and claim taxi fare with receipts instead.

Wow 3k for senior staff... can easily cover the full cost for basic car and sill got few hundred left over for saving.

Edited October 9, 2015 by flashbang

[13177]

$3k car allowance is a lot!

[Porche]

My previous company pay 1.2k car allowance but basic pay sucks

[WoeiSongKeh]

My car allowance is 1.2K but need minus CPF which in the end abt 1K

[Blackyv]

Reading this post will cause me fall into depression... Knn.. My coy give $500 nett.. After cpf deduction , just nice enough for my 1 mth petrol only...

[GLZT]

Reading this post will cause me fall into depression... Knn.. My coy give $500 nett.. After cpf deduction , just nice enough for my 1 mth petrol only...

 

1 mountain higher than the other, many people dont even have a single dollar car allowance.

[Friendstar]

Ya don't compare. I have no car allowance

[Solar]

My current client is better... No need to meet cos they shifted their HQ and got no place for us to meet in person, all via phone conference... And I get to continue pocket the 1.1k :-P

[Mugenboy]

So if ask for $1,000 car allowance which cover the parking & ERP is consider a good deal? Could we ask employer not to put for CPF & income tax purpose?

[Solar]

So if ask for $1,000 car allowance which cover the parking & ERP is consider a good deal? Could we ask employer not to put for CPF & income tax purpose?

Imo not too good...Unless perhaps u plan your trips, like long client meetings u take cab.

My 1.1k exclude parking and ERP. Purely for using own car and fuel to meet client.

[flashbang]

So if ask for $1,000 car allowance which cover the parking & ERP is consider a good deal? Could we ask employer not to put for CPF & income tax purpose?

 

They can't, cos the company needs to account for the money and they will mark it as paid to employee so they can reduce their company tax. Hence, on your side it will fall under your personal income tax. CPF will apply as usual. Don't think of it as car allowance, think of it as extra salary!

[WoeiSongKeh]

My current client is better... No need to meet cos they shifted their HQ and got no place for us to meet in person, all via phone conference... And I get to continue pocket the 1.1k :-P

 

Wah jin goot, really tan tio