Mileage v. Company Car

edhenderson

We currently pay business mileage at the IRS rate. We are considering providing company cars to anyone who drives more than 12,000 miles per year. If an employee does not accept the company car and still wants reimbursement, we will pay mileage during the year only up to what the car would have cost. Does anyone have this kind of policy? Comments?

TN HR

I know this was not your question, and may not be an option for you, however, I would suggest getting away from reimbursing mileage. If they choose not to take the company car then offer them a flat vehicle allowance and let them expense gas.

Gene

LivindonSouth

How would you determine "What the car would have cost?" Are you talking about what it would cost the company to lease and maintain a vehicle? That would cost more than the occasional business mileage expense report.

I don't agree with a mileage allowance, particularly for the many employees who have only a trip or two to the airport, several to the post office or a couple of business meetings during the month. They don't warrant a full blown automobile allowance, nor do they justify a company car. Nor should they be expected to 'eat' the expense.

edhenderson

This is not for the casual trip; they would still get mileage. It is for employees who drive 12,000 miles or more a year. They get $4500 or more in mileage: enough to lease and provide gas, insurance, etc for a company-provided car.

jmcaa

[font size="1" color="#FF0000"]LAST EDITED ON 09-19-05 AT 03:23PM (CST)[/font][br][br]what kind of car will you be able to lease, provide gas, insurance, maintenance, etc. for under $375 per month?

(4500/12 months) The $375 would have to include everything.

LivindonSouth

I'm thinking 'Moped'.

TN HR

That or one of my uncles "tote-the-note" $50 per week for the rest of your natural life specials. Unfortunately the remainding $175 or so would be spent on oil.

Gene