sales travel adders

HRQuest

For our outside sales reps, we give them the choice of being paid for personal auto mileage on a per mile basis (existing IRS rate of $.37.5 per mile) or they can take a $400 monthly travel adder which is added to their paychecks each month and is taxable. I'm wondering how others are handling personal auto use for sales reps.

Pork

HRQUEST: In a previous company, we paid a $400.00 basic allowance per month supported by documentation for every mile on the odometer (a driving daily log covering business/sales travel visits/and personal use), for having a personal vehicle to conduct company business, plus other than routine maintenance, plus actual business miles at the current IRS approved rate, plus the annual insurance premium at the required $1 million liability rate. No documentation meant no allowance check! We also specified the type of vehicle required for this vehicle allowance. The President was authorized a BEEMER, THE VICE PRES FOR ADMIN my boss was authorized a VET, HR WAS AUTHORIZED A OLDS 98, SALES WAS AUTHORIZED CROWN VICs or VANS and the dodge caravan was the one we could get real cheap for the individuals who requested our help!

I now have a company provided vehicle a "buick", I do not haul "piglets" but I do escort visiting recruits and must deliver checks and our "Golden Juices" from time to time. I wish we could go to the personal ownership program. It is cheaper in the long run!

Good LUCK!

PORK