Few of us drove as far in 2020 as we did in 2019. If you drive a company car, more appropriately known as an employer provided automobile, your standby charge could have been a lot higher in 2020, as your business kilometers could be a lot less.
However, CRA announced that for 2020 and 2021 the T4 Standby charge calculations you use are the same amount as you used for 2019 provided you are working for the same employer.
The standby charge is calculated at 2% per month of the original cost of the vehicle and is reduced by business use. If your business use for 2020 was less than your business use for 2019, you can use the 2019 amount. If you lease, the calculation starts with 2/3 of the lease payment and is reduced by the business use.
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