(1) Payments made to the employee for rental of equipment or other capital assets owned by the employee are not wages if:

(a) the rented equipment is necessary for the employee to perform the job;

(b) employment contract or corporate records provides for such payments;

(c) the amount of each employee's reimbursement is entered separately in the employer's records; and

(d) reimbursement does not replace the customary wage for the occupation.

(2) The actual expenses incurred by the employee may be considered reasonable rental fees if the employer's records showthe following:

(a) initial cost;

(b) depreciation; and

(c) maintenance and operational costs in connection with the services performed for the employer.

(3) With respect to equipment or other capital assets,other than vehicles, the employer may pay an allowance not greater than the reasonable rental value for that asset.

(4) For individuals involved in timber falling, the reasonable rental value may not exceed $22.50 per working day for chain saw and related timber falling expense.

(5) With respect to heavy equipment, including but not limited to semi-tractors or bulldozers, the reasonable rental value may not exceed 75% of the employee's gross remuneration.

(6) Passenger vehicle expenses may be reimbursed either on the basis of actual receipts or upon mileage, at a rate no greater than that allowed by the IRS for the preceding year, provided that the individual actually furnishes the vehicle.

(7) For purposes of this rule, hand tools customarily used in the employee's trade have no rental value. Any rental payments made with respect to these items are considered wages.