A car allowance clause outlines the terms under which an employer provides a predetermined monetary compensation to an employee for the use or maintenance of their personal vehicle for work-related purposes. This clause typically specifies the amount, frequency of payments, and any conditions or requirements the employee must meet to qualify for the allowance.
(4) Includes (a) $13,200 of 401(k) contributions and $29,755 of health insurance premiums paid on behalf of Mr. Cowart, and $9,000 of car allowance paid to Mr. Cowart (2023); and (b) $11,634 of 401(k) contributions and $28,168 of health insurance premiums paid on behalf of Mr. Cowart, and $7,350 of car allowance paid to Mr. Cowart (2022).
Amounts reported in the “All Other Compensation” column include company contributions to the Named Executive Officers’ 401(k) plan retirement accounts, car allowance amounts, and employer-paid life insurance premiums, as reflected below.
Mr. Quinn commenced employment with the Company on September 1, 2019 and was not eligible to receive any Company 401(k) plan contributions or a car allowance during 2019. In 2020, Mr. Quinn is eligible to receive Company 401(k) plan contributions and is receiving a car allowance.
Under the terms of the Current Powell Agreement, Mr. Powell (i) receives an annualized base salary of $330,000; (ii) is eligible to receive an annual bonus with a target opportunity of 50% of his then-current base salary, with the actual amount to be determined based on financial metrics to be decided by the Board; (iii) is eligible to receive annual equity grants pursuant to the Company’s long-term incentive plan; and (iv) is entitled to a monthly car allowance of $1,400.
You will receive a car allowance of $9,600 per annum (less the required withholding taxes and other statutory deductions) on a monthly basis. The car allowance is payable on the first pay period of each month. The car allowance will be treated as taxable income.
Amount represents a one-time vacation payout of $274,665 due to a change in the Company’s vacation policy during 2020, a Company match of $13,386 under the 401(k) plan, $10,809 of life insurance premiums paid by the Company for which Mr. Whang’s spouse is the beneficiary, a car allowance and a discretionary contribution to his health reimbursement account. We consider the cost of the car allowance, which did not exceed $10,000, and life insurance premiums to be perquisites. The car allowance was discontinued in 2020.
Amount represents a car allowance of $18,000, $10,809 of life insurance premiums paid by the Company for which Mr. Whang’s spouse is the beneficiary, a Company match of $15,455 under the 401(k) plan and a discretionary contribution to his health reimbursement account. We consider the cost of the car allowance and life insurance premiums to be perquisites.
Amount represents a car allowance of $32,951, Company contribution under the 2017 Netherlands pension plan of $16,689, value received for spousal travel expenses and Company-paid tax preparation fees. We consider the cost of the car allowance, value received for spousal travel expenses and Company-paid tax preparation fees to be perquisites.
“4.6 Car Allowance. As of the Amendment Effective Date, Employee shall be provided a car allowance of $600 per month payable on the fifteenth (15th) day of each month. During the Term of this Agreement, Employee shall also be provided a lease deposit of $5,000 every thirty six (36) months from the date hereof with the first such lease deposit being paid to Employee within thirty (30) days of the Amendment Effective Date.
3.6 Car Allowance. The Company will provide Employee with a monthly car allowance of $800.00 (“Car Allowance”) until June 30, 2024.
3.5 Car Allowance /Leased Car During the term of your employment, you shall be entitled to car allowance or a leased car, at your discretion, in accordance with the terms set forth in Annex A.
8. Car Allowance / Leased Car At your discretion, the Company shall either: (i) pay you a monthly car allowance in the amount of NIS 4,500 per month (gross) (the “Car Allowance”). The Car Allowance shall not constitute part of the Salary for any purpose whatsoever, including for purpose of calculating your social benefits. In addition and for the avoidance of doubt, it is hereby clarified that the Car Allowance shall be provided in lieu of any payment in respect of commuting expenses.
Additionally, Mr. Stoppenhagen will receive a car allowance of $250 per month and an office allowance of $250 per month. The term of the contract is from January 1, 2020 to December 31, 2025. A copy of the Employment Agreement is attached to this Form 8-K as Exhibit 99.2 and is incorporated herein by reference.
A car allowance is a sum of money provided by an employer to an employee for the purpose of covering expenses related to the employee’s use of a personal vehicle for work purposes. This allowance is meant to cover costs such as depreciation, fuel, maintenance, insurance, and other vehicle-related expenses.
A car allowance should be used when:
In choosing to use a car allowance, employers often consider factors like the nature of the work, availability of company vehicles, and the administrative costs of managing a fleet.
To write a car allowance in a contract, you should include the following components:
Example:
The Employee is eligible for a monthly car allowance of $500, intended to cover expenses incurred through the use of their personal vehicle for work-related travel. The Employee agrees to maintain accurate records of mileage and provide them to the Employer upon request. The car allowance is considered taxable income and will be subject to applicable deductions.
Contracts that typically contain a car allowance include:
Including a car allowance in a contract should be carefully considered, with clear terms to ensure that both the employer and employee understand their rights and responsibilities.
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