I know most of you dont do this, but what are you paying your guys for mileage if they use their own vehicle? I have a guy that works part-time for me, and he uses his own vehicle to do commercial route windows. Whats the going rate on paying mileage?
We don’t but if I did it would be whatever the state/nation requires. Don’t remember where but there is a place which tells you what the going rate is. Last I knew it was close to $0.52 a mile
How are you paying him currently?
If my guys use their own vehicle I pay them .20 a mile. That amount cares for their gas and scheduled maintenance.
Many companies outside of window cleaning simply give a set lump sum every month toward expresses they incur while working. This would definitely would be a better option if you feel better on controlling the amount of miles they drive around.
Much depends on how much they drive their car and the mileage they rack up.
That doesn’t even sound like enough to cover gas nowadays
When gas goes up I adjust the amount. Its enough but not so much that they want to drive around. i knew personally of one company where the employees would take the long way home and would pad their mileage in other ways because they were being paid the governments rates.
Obviously the best way is a company vehicle but for many thats just not an option or just don’t want the hassle of extra trucks.
The current IRS rate is .55 per mile. You can give your employees any amount up to the .55. They can deduct the difference on their income tax if they itemize. Personally if they use their vehicle for my business I give them the full rate. If you offered me.20 a mile for me to use my truck I would politely tell you where to put it.
A related question: when you compensate an employee to use his own vehicle how do you cover yourself(ves) as far as insurance?
.55 cents is generous and Im sure your guys appreciate it. I try to spend money in other facets of caring for my guys. When it comes down to it i guess it depends on how we all spend our money. It all evens out
I currently was paying him just a set amount, but he doesn’t travel enough to justify me buying a truck for him to drive. I think since April till now, he has drove 500 miles total.
You can google the distance between the job and their home to insure they don’t pad too much.
.40 a mile is reasonable. Gas is the biggest issue with employees
For 2011 the IRS allows .50 per mile from jan. 1. 2010 to june 30. From July 1 to 12/31/2011 it is .55 per mile. As the employer, you need to determine if you are going to include the amount in their W-2 wages, or on a 1099 misc in box 3 as Other Income. They can report this money on line 21 of their 1040, as other income, and use Form 2106 to declare the money as Unreimbursed Employee Expenses on their Schedule A
Do not use a 1099 misc with the amount in box 7 as this will require the employee to file a Schedule C and then pay Self-employment tax on the money
