What are you paying or gettng paid to use your personal vehicle?
Most places I've ever worked followed the latest GSA rates.
Current GSA rate is $0.51/mile. That's for automobile travel. Running a work truck around town would be higher.
Usually whatever the IRS allowable deduction rate is for the period in question. This is the rate the GSA and other government entities use. Anything paid more than that is taxable income.
Note that if you are curious because you are doing your 2010 taxes, the rate for all of 2010 was 50 cents per mile.
Note also that the allowable IRS reimbursement deduction changes, and not always on Jan 1.
Can one really put a survey chariot on the road for $0.50/mile ?
Cheers
Derek
i pay my guys the irs standard to use their trucks to run plats to clients and do courthouse research. $0.51 per mile. i always round them up 50 miles or so per pay period just to make it worth their while. i try not to ask them to survey out of their trucks unless we are in a pinch.
> i pay my guys the irs standard to use their trucks to run plats to clients and do courthouse research. $0.51 per mile. i always round them up 50 miles or so per pay period just to make it worth their while.
Suppose you have an employee and he uses his own vehicle for doing a task for the company, pay him mileage....what happens if he is in an accident while working and he & the vehicle are both damaged.
How does the liability wash out? I am thinking workmans comp covers him and his insurance covers his vehicle. Is there any other possible liability I can be held accountable for in this situation?
> Can one really put a survey chariot on the road for $0.50/mile ?
When you consider that the chariot is doing it's best work when parked at the work site, no, you can't.
If his insurance says he uses the vehicle for to-and-from work only, and he is using it for work, and the insurance company gets wind of it, his vehicle may not be covered. You may want to talk to your insurance guy about your liability in these situations.
Great questions.
A calif company employee was just denied workmans comp for injuries sustained in a collision, and he was in a company truck. The insurer said he wasn't performing work duties at the time. See CLSA website for more info on that.
As for liability, the company's insurer is covering the company's vehicles, not the employees vehicle. And, if the employee's vehicle insurer finds out the accident occured as part of the job, then they will likely balk at paying as the employee likely does not have a business liability policy.
Likely the employer's general liability policy will be the target.
Just a hunch, but I suspect that the employee's insurer would have a hard time refusing coverage if on-the-job vehicle use was just occasional, but could perhaps pull it off if the vehicle was being routinely used for work purposes (unless the policy explicitly states the contrary). (I've heard that the 5 words insurers most dread to hear are "I've read my policy and...").
When I figured what it was costing me to run vehicles way back in 1975, with everything taken into account, I came up with 0.75 cent per mile then. With things being 3 to 4 times higher now, a more realistic amount would be $1.50 per mile. If I remember correctly, in 1975 the mileage rate the government was showing was 0.25 cents per mile.
I charged my vehicles out at 0.50 cents per mile and $2.00 oer hour for job related costs way back then in order to pay for all the related vehicle costs which included replacement of units about every three years. Back then a new four-wheel drive was a little over $5000 for a GMC Sierra Grande without air. With the cost of replacing a vehicle now at $25,0000 to $50,000, chargeout would have to bee a lot more than $1.50 per mile plus an hourly fee.
A friend of mine was delivering pizzas out of hid dad's truck. He had an accident, and the insurance would not pay for either vehicle. My friend lost his license, and his dad's truck was totaled.
The dad told me that the insurance denied coverage because he was using the vehicle for commercial purposes, and he did not have the insurance policy to cover it.
