Hey all. I know this topic has been addressed but i didn’t see the answer to my question in previous posts. When you pay commission to your employees, do they use company vehicles or their own? If using company vehicles, do you make them pay for gas and pay a higher commission or reduce the commission and use company funds to pay for gas?
Currently, my employees are driving company vehicles, I’m paying 40% to the driver and making them pay for gas. Just curious to see what has been profitable for the rest of you. Thanks in advance.
I am surprised you are making them pay for their own gas, and even more surpised they are actually doing it. Do they pay for oil changes tires and other maintenance too?
So they use the company truck to do work for the company but they pay for the gas? Doesn’t make much sense to me. Unless they where independent contractors using their own truck and equipment I wouldn’t make them pay for gas.
If it is a comp vehicle you pay for gas and write off mileage, if they are sub or 1099 they pay for gas and write off mileage and if they are W2 driving their own vehicle, you pay them for mileage
[QUOTE=greerjr;182689]Hey all. I know this topic has been addressed but i didn’t see the answer to my question in previous posts. When you pay commission to your employees, do they use company vehicles or their own? If using company vehicles, do you make them pay for gas and pay a higher commission or reduce the commission and use company funds to pay for gas?
Currently, my employees are driving company vehicles, I’m paying 40% to the driver and making them pay for gas. Just curious to see what has been profitable for the rest of you.
I max out at 30% per guy and I pay the gas. 40% is a large cut from the job if you ask me. I think I would drop them to 30% and pay the gas (unless you drive Hummers for work vehicles
I used to deliver for Jimmy Johns and we paid for everything: gas, ins, uniforms, no compensation on mileage, and drove 60-100 miles a shift in our own cars. We got paid 6/hr, but made $175 in tips a night.
Thanks WinderWarsher, that’s what I was looking for and that seems more than reasonable to me. I borrowed a contract from a colleague who used to own a w/c business and his employees used their own vehicles and he paid them upwards of 45%. I want to buy company vehicles and still pay them commission,; just wondering what the best course of action was. Thanks Guys!
Do you mind me asking what bank / program you’re using for the pre paid credit cards? I just spoke with my bank and they want the name of the employee on the card they’re using. Seems like a hassle.
I don’t understand this. You’re asking your employees to pay a business expense??
It doesn’t make any sense to pay an employee a bigger percentage (that they are taxed on) so they can turn around and fill up the company vehicle. I would pay them less and fill up the company vehicle myself because it is a company expense not an employee expense. Or am I wrong and you are reimbursing them?? I can understand them filling up if they are being reimbursed but it doesn’t sound like it.
Heck I worked for Fish for 2 years and they paid weekly for gas and I was driving my own vehicle. Fish I tell ya!
Just curious does anyone else have employees drive the company vehicle and pay for gas as well?? I don’t think I’ve ever heard of it before now.
I do also. My residential division Supervisors of each truck take care of all the gas. They also take the truck home with them. I do pay them a higher % but it all works. My commercial side 15 guys strong for 15 years now have always used there own vehicles and paid there own gas. It’s the way I have always done it and with the price of gas only going up it has been a very smart decision.
We foot the bill for all vehicle expenses. However if one of our employees would whip out their wallets and pay for a tank of fuel, We just might give them a raise…:rolleyes:
