[username604]

I work at an accounting office, I\'m 17, and my boss is having me do a couple deliveries. How much should I ask for per mile? I\'m driving around an industrial area with traffic lights etc. Should I just ask for gas at the city rating of 17mpg? This is on top of minimum wage ($8 before tax).
Thanks guys!

[THE TECH]

Kinda depends on your job description.

[Aleksey]

http://www.irs.gov/newsroom/article/...240903,00.html

enjoy

[Infamous]

Make sure they are also willing to insure you for any incidents on the road and make sure they give you their insurance info. There is a possibility your own insurer may exclude you (there is likely a condition in your policy that states no business use)

[Rennyk.]

.555 cents until the end of the year then it goes down I'm pretty sure.

[John 070]

You shouldn't be using your BMW for delivery work imho. The cost per mile far exceeds IRS guidelines. Where you make out is when you use a junk car, and then get reimbursed 51 cents per mile for 2011 or 55.5 cents for 2012. FYI an Accord is like 43 cents per mile, whereas a 335 is 93 cents per mile (at least back in 2007)....

[pimp4cheddar]

Originally Posted by John 070

You shouldn't be using your BMW for delivery work imho. The cost per mile far exceeds IRS guidelines. Where you make out is when you use a junk car, and then get reimbursed 51 cents per mile for 2011 or 55.5 cents for 2012. FYI an Accord is like 43 cents per mile, whereas a 335 is 93 cents per mile (at least back in 2007)....

How did you come up with an Accord and 335 rate?



The IRS states the mile rate is 55.5 cents a mile...regardless of car - right?

[John 070]

Originally Posted by pimp4cheddar

How did you come up with an Accord and 335 rate?



The IRS states the mile rate is 55.5 cents a mile...regardless of car - right?

Yes, you are correct, and those are simply guidelines, an employer doesn't have to use it if they don't want either (i.e. pay less)....

No, what I mean is that edmunds used to have a true cost of ownership feature that told you what your car costs you to drive....the 750 was something crazy like $1.23/mile....

[pimp4cheddar]

Originally Posted by John 070

Yes, you are correct, and those are simply guidelines, an employer doesn't have to use it if they don't want either (i.e. pay less)....

No, what I mean is that edmunds used to have a true cost of ownership feature that told you what your car costs you to drive....the 750 was something crazy like $1.23/mile....

Ahhh...cost of ownership. I thought you meant gas/mile reimbursement rate.

$1.23 is insane...mind blowing insane! LOL

[MKR_DmD]

.51 cents a mile sound fair to me. I would drive around for that kind of mileage. Gas is $4/gallon, average 20mpg, get paid $10/gallon, profit $6. Sounds like a good deal to me.

[Orion4]

I believe the IRS standard mileage rate referred to above is for taxpayers to use in
computing the deductible costs of operating an automobile for business, charitable,
medical, or moving expense purposes. Not sure of the direct correlation to what a business should compensate an employee for occasional business use. If this is part of your job description, it should have been articulated in either the compensation agreement or in the Employee handbook. In our case, we use the GSA schedule/rates for mileage and Per Diem for both government and business travel and mileage.

Important point mentioned above about insurance both auto and personal. make sure you and your car are adequately covered in case of accident, injury, damages, etc. preferable by the company insurance rider. Most personal and auto policies preclude business coverage without a rider.

[nbkkvv5]

Originally Posted by THE TECH

Kinda depends on your job description.

+1
If its part of your job description, then you need to ask about company reimbursement policy. If it’s not part of the job description were those deliveries a onetime shot or does your boss expect you to make ongoing regular deliveries with your car?
If there is no company policy in place, the IRS rate is a good base line you can ask for.

[Michael Schott]

I don't use my personal car for business but when I fly for business they give me 42 cents/mile for the mileage. That's reasonable and more than pays for the gas. I wouldn't want to drive a lot of miles on my personal car for work due to the wear and tear though.

[togatown]

Ask your boss if his policy includes "Non-Owned Car Liability (ENOL) or the equivalent for delivery. That usually endorses his business policy to cover his employees while making deliveries with their own vehicles. If it is incidental and rarely done, it might not be a problem, but still you are possibly exposed to liability if your carrier denies coverage due to business use. YRMV.

[Kruz]

You better ask for a big raise and mileage...how does one afford a 335i at $8/hr?

[AddictedToBavarian]

Tell him "Sure! Where are the keys to YOUR car?"

[AddictedToBavarian]

Originally Posted by Kruz

You better ask for a big raise and mileage...how does one afford a 335i at $8/hr?

Surprised no one mentioned that yet. Lol

[Aleksey]

Originally Posted by Orion4

I believe the IRS standard mileage rate referred to above is for taxpayers to use in
computing the deductible costs of operating an automobile for business, charitable,
medical, or moving expense purposes. Not sure of the direct correlation to what a business should compensate an employee for occasional business use. If this is part of your job description, it should have been articulated in either the compensation agreement or in the Employee handbook. In our case, we use the GSA schedule/rates for mileage and Per Diem for both government and business travel and mileage.

Important point mentioned above about insurance both auto and personal. make sure you and your car are adequately covered in case of accident, injury, damages, etc. preferable by the company insurance rider. Most personal and auto policies preclude business coverage without a rider.

from IRS link:
"The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage."

[dcat151]

The IRS is what my firm uses to compensate our employees for mileage.

[akdoc]

We pay $.55/mile for this kind of thing at my company.

[elim11]

Originally Posted by akdoc

We pay $.55/mile for this kind of thing at my company.

+1 ditto. That's pretty standard.

[lpphreakx06]

Relevance of starting your age? Borrow your parents car for work.