Our admin staff are paid mileage for any errands they run via a reimbursement at the IRS mileage rate, or they have the option of using the company car when it is available. They do not get a reimbursement when they drive a company vehicle.
Most of our Superintendents have company issued vehicles, but for those that don't, they receive a monthly vehicle allowance that is taxed as income to cover the use of the vehicle and a credit card to cover the gas for company travel. The allowance is taxable because we do not have them submit a mileage log. We have advised them to keep track of their company and personal miles and all other vehicle expenses and to seek advise from their tax preparer on the best way to minimize the tax consequences from these allowances. Our OnSite Project Managers also get a taxable vehicle allowance and credit card for gas purchases.
Our office Project Managers do not travel as often, so they get a taxable vehicle allowance and a non-taxable mileage reimbursement at 45% of the IRS rate for any documented business miles. They submit a mileage log listing all business trips once per month. If they do not provide a mileage log for the prior month, their vehicle allowance for the next month can be delayed.
For any of our eligible employees to receive a vehicle allowance, they must provide proof of insurance and a valid drivers license. They also sign a driving record release form, which grants us permission to run their driving record as needed. They must provide a vehicle appropriate for professional business use (late model pickup or SUV, depending on their role with the company, would qualify...a beat up rust bucket car that can't navigate a muddy job site wouldn't qualify)
All vehicle allowances continue through normal PTO use, but are suspended if the employee is on extended leave for any reason.
We have also pointed out to our employees that these taxable allowance payments can increase the amount they are contributing to their 401k if they are contributing based on a percentage of their income rather than a flat amount. They may want to adjust their contribution rate accordingly.
Best of luck!
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Stephanie Magenau, Controller
Construction Engineers, Inc
Grand Forks ND
(701) 792-3200
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Original Message:
Sent: 01-18-2018 12:47
From: Corinne Cole
Subject: Personal Vehicle Reimbursement
We are curious to how others are handling personal vehicle use within your companies. We have Superintendents, Project Managers, and Admin staff that all use their personal vehicles for work (driving to job sites, running to get office supplies, plans, etc.) How are you handling reimbursement? If you pay mileage, when do the superintendents begin counting mileage (immediately from their house to the job site, 25 miles after they leave their house etc.) Are you doing a vehicle allowance? If so, how do you process it?
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Corinne Cole
Controller
HICAPS, Inc.
Greensboro NC
(336) 665-1234
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