Travel allowances are important for employees who do a lot of travelling for their jobs.
There are two kinds of allowances you can give your employees: An advanced travel allowance; this is when the allowance is a standard part of their salary. And a reimbursive amount; this is when you pay your employee back for their travel expenses.
Now you may know your employee with an advanced travel allowance must have a logbook, but what about your employee with the reimbursive one?
Read on to discover the answer...
Does your employee need a logbook for his reimbursive travel allowance?
The answer is yes and no. Because your employee needs to claim the money back from your company, he'll need to have a record of some kind to submit.
This can be a traditional logbook with details such a total kilometres, opening kilometres, closing kilometres, business travel, private travel and reasons. These kinds of details can be very useful but not always necessary.
Some companies simply ask their employees to complete an expenses claim that shows the distance they covered and the money they want to claim back for fuel.
This counts as their form of a logbook because the company will keep these records to substantiate the employee's travel expenses.
Here's how often your employee should submit these forms.
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Here's when your employee will need to submit these forms
Your employee must submit these forms/logbook to your accounts department each month to get their reimbursement.
They may also need copies of them to submit with their annual tax return. This way, SARS can verify any information regarding this reimbursive travel allowance.
Even though your employees don't need a traditional logbook for a reimbursive travel allowance, consider asking them to keep one anyway as the more details they can provide, the better it is for tax purposes.