how do you handle mileage reimbursements?

lnelson · October 2005

We have several ees who use their own vehicle and we do a mileage reimbursement plus pay for the gas. My problem now is that some of the ees are asking us to pay for any repairs (tires, brakes, tune ups, etc) that may be needed also.

So my question would be would you pay it or do you consider that to be part of the reimbursement?

Thanks,
Lisa

WT · October 2005

You might better stick with the standard IRS mileage reimbursement rate. This is supposed to figure in the value of the miles driven plus the gas consumed.

Balloonman1 · October 2005

[font size="1" color="#FF0000"]LAST EDITED ON 10-28-05 AT 09:34AM (CST)[/font][br][br]Pay the IRS rate, and for nothing else......that is my recommendation. Remember the IRS rate does factor in wear and tear etc etc.

My $0.02 worth
The Balloonman

gismo · October 2005

We pay the IRS rate, we do not pay for their gas or anything else in addition to that rate.

KathyHR · October 2005

As a non-profit we pay the IRS rate. Used to be that the rate was much more than what gas cost so I considered the wear & tear included in the reimbursement. Even now with a reimbursement rate of $.485 per mile that's more than what gas costs, but it would depend on the car's MPG. But even it if weren't we wouldn't pay for repairs.

Kiwi · October 2005

We also reimburse only for mileage at the IRS rate. I wouldn't want to open up the paying for repairs can of worms.

lnelson · October 2005

Unfortunately, my VP seems to think I am just too black and white on this subject and she wants more grey. She is agreeing to pay half the cost on some repairs but only when they ask for it.

I do not agree and like you said we are just opening a can of snakes, worms, spiders and any other creepy crawly things.

Thanks for the advice. Sometimes I just wish they listen to my recommendations.

Lisa

Balloonman1 · October 2005

Your VP is an idiot! Wait till you have paid for 1/2 the repairs of a couple of white employees and she balks at paying half the repairs of some minority who needs a whole new engine....... You will pay alright.
As for labeling your VP as an idiot, not meaning to be harsh, just factual. Where I work the b@stards won't even reimburse at the IRS rate.

:-)

My $0.02 worth,
The Balloonman

pork1 · October 2005

BALLOONMAN:

Nasty talk against your hand that feeds you and your family. Ours only pays .35 cents a mile and nothing on repairs.

At a previous company: repairs that were an essential function of the travel requirement, like a battery that goes dead and the engine will not run because the alternator is no longer putting out enough juice to run both the engine and the other electrical demands required for the travel and the mission completion would be covered. We considered these situations like an aggrevation of a previous exsisting medical condition so W/C picks up the tab. Tire replacement is not one of those, but a blow out would be one of those, or the alternator that suddenly went dead and the longer term expense of meals and over night accomodations of the ee who is out accomplishing our mission makes good sense to pay for the repair and save the cost of additional expenses on the road.

PORK

Balloonman1 · October 2005

Not nasty talk Pork, truely just being honest.........

Balloonman

Kiwi · October 2005

Would she maybe go for paying only mileage, but at a higher rate? That way you would be helping on the maintenance cost, but applying that assistance fairly to everyone. Agreeing to half on some things when they ask really is asking for trouble. And who is stuck deciding who gets it? Does she really want people in her office with their tales of automotive woe?

TN HR · October 2005

My suggestion is to pay the IRS rate and nothing else. At .485 per mile, in a car averaging 20 MPG, the employee is receiving approximately .34 per mile in addition to the fuel costs. This is supposed to cover the wear and tear and associated up-keep costs. Look at it this way. Employee drives approximately 200 miles per week (10,400 per year) in personal vehicle for the company. At the IRS rate (.485) here's the annual breakdown:

Miles driven:

Fuel costs: $1,560
Oil changes: $100
Tune-ups: $250
Misc. Repairs: $500

Total $2410

Co. pays: $5044

Employee pockets: $2634

$2600 should cover, or at least offset, most major repairs.

Gene

pork1 · November 2005

I, concur,I just wish that our company would get to the authorized amount of 48.5 cents per mile. Heck I might even give up my 65,000 mile company car for those opportunities.

Pork

CindyG · October 2005

I agree with everyone about paying the IRS rate to cover wear, tear & gas. My company only pays $.30 per mile!!

Balloonman1 · October 2005

Remember that if they pay you less than the IRS rate you can deduct the difference on you taxes. Something I learned when I worked for the only other company that did not pay the IRS rate.

My $0.02 worth,
The Balloonman

atrimble · November 2005

Only one person (the top dog) gets a personal vehicle allowance, which is $200 per month. Any employee that takes a day trip has to take a company vehicle. If one is available, employees also take a company car for overnight trips. Only if they'll be gone for two nights or more do we allow them to take their personal vehicle, for which we pay the IRS rate minus two cents (things aren't as expensive here in the Midwest as they are on the coasts).

how do you handle mileage reimbursements?

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