Calculating a standby charge benefit

The standby charge is for the benefit employees get when your automobile is available for their personal use.

If the employee does not use your automobile for personal driving, there is no taxable benefit, even if the automobile is available to the employee for the entire year. This applies as long as you require the employee to use the automobile in the course of his or her employment.

You calculate the standby charge differently depending on whether you own or lease the automobile.

Related topics

• Calculating automobile benefits