My employer will not reimburse me for mileage...

Factual Questions
1

I work for a small company. I have no “contract” outlining the terms of my employment, just a salary/benefits agreement.

I have to drive a great deal for the company. Sometimes I have to haul heavy equipment or tow trailers of equipment.

When I submitted a request for mileage reimbursement my boss said when he hired me he expected to get the use of my vehicle as well. He said he does not reimburse for mileage. We did not discuss this when I was hired. I assumed (yeah dumb I know) that I would be compensated for my mileage as is the standard…

So- do I HAVE to use my vehicle if they are not going to reimburse me at all? Can they fire me if I make my vehicle unavailable for work use?

To add insult to injury I had to pull a heavy trailer full of equipment last week and my transmission clunked once and is now really messed up. They will not help me with the repairs.

Any idea where I stand legally here?

2

I don’t know the answer, but a relevant question might be: are you an employee or a contractor? Just because your employer calls you one or the other doesn’t make it so.

3

Legally, I don’t know what kind of recourse you have. (You CAN deduct these miles on your taxes though). Before you do anything, you should decide how important this job is to you. If it’s not big deal to you and you’re not worried about losing your job, this is what I would do. Next time boss asks you to go somewhere. Ask him for keys to his car, or for a company car. You can tell him that you don’t have gas or your car is in the shop, or your tranny crapped out last time and you don’t want to do anymore damage to it, or that you just don’t want to use your car anymore unless you get compensated for it, or a raise. I would hope that if I was getting hired and into a position that required alot of driving, that they would tell me I would have to provide my own transportation.

Maybe next time you know they’re going to make you haul stuff, you could take the hitch off your vehicle. Or you could tell them you took your car into the shop any they told you that you shouldn’t be hauling anything.

4

In short - you’re screwed.

These type of employment terms must be settled in advance. When you used your car without getting clarification, you in effect agreed to his terms (raw deal as they may be). You may be able to negotiate, but I wouldn’t hold my breath. Depends on how much the firm has invested in you for training and such and how hard it would be for them to replace you if you walked out. If your quiting puts them in at least a short term bind, they may negotiate.

At any rate, doesn’t sound like an employer you want to spend a long time with. Either way I recommend at least starting a search for a different job.

5

Joey P is correct. You can deduct your business related expenses via form 2106 on your Fed tax return.

Make sure you are keeping a log of your miles and other expenses (meals, lodging, etc incurred while traveling).

6

I deduct mileage that I get partially reimbursed for as an independent contractor for a newspaper.

A guy at the IRS said that since the payment is just mixed together in one check, I can deduct the IRS amount (which is greater than what the newspaper pays me by about 10 cents/mile) if I fill out the paperwork.

7

While I think it’s a bummer, newscrasher, that your finding this out (and I agree, this is NOT the kind of employer I’d want to develop a long-term employment relationship with), it’s important to clarify a couple things on the tax issue:

If you are a regular employee and receive a W-2 for your earnings, you will only be able to deduct the unreimbursed mileage if you itemize your deductions (as a broad, general guideline, you are probably only doing this if you own a house and are making mortgage payments), and even then, the mileage is deductible only to the extent that it exceeds 2% of your income. That is, if you are making $25,000 per year, you will only be able to deduct the mileage (and other unreimbursed job expenses, including union dues) amount over $500. For most people this won’t apply. If it doesn’t apply to you, don’t bother with keeping the log.

On the other hand, you may want to keep the log just for CYA purposes, in case this issue ever has to get pressed with employer.

8

Regarding drpepper’s post: if you are tracking mileage, as I have done in the past, you will likely find that it easily comes to a few thousand per year. It might be worth looking at the deduction. And, a new job.

Good luck!

9

Don’t forget that it’s not just the petrol you’re paying for. You also have to take into account the wear and tear on the vehicle, oil, screenwash, fanbelts etc. and the depreciation in the car’s value (due to added mileage), not to mention any fines you might incur, etc. I think you can probably find info on the web somewhere about the average total running cost of various types of car.

I don’t know what this guy’s paying you, but if it’s a lowish wage then, taking into account the total cost of running cost of your car, you might be close to break-even…

Also, make sure that your insurance covers business use. I don’t know what the situation is in your location, but you may have to pay an extra premium, or worse: have an accident only to find that you’re not covered.

10

The IRS has a fixed mileage amount – it used to be $0.31 per mile – that you can use, which includes the costs of gasoline, oil, average repairs, maintenance, insurance, etc.

11

>> So- do I HAVE to use my vehicle if they are not going to reimburse me at all?

No, you don’t.

>> Can they fire me if I make my vehicle unavailable for work use?

Probably Yes they can. They do not need any reason.

>> Any idea where I stand legally here?

As far as claiming past expenses? I figure you would have a good case in small claims court. The government looks at certain criteria to decide whether you are an employee or an independent contractor and whether you supply and pay for your own tools/equipment/materials is one of them. Conversely, if you are defined as an employee it stands to reason that your employer would pay for those.

I would not use my car or tools without being compensated for it. If your employer is adamant i would look for another job.

12

I would also consider the insurance issue.

Are you insured for your vehicle to be used for providing a paid service to your employer ?

I would be very surprised, you usually have to make this fact available to the insurers.

I would expect to see any such term as use of your vehicle on your contract of employment, if it is not, then you cannot be obliged to use it.

This is one of the things that would be included, how can you be held to work within the terms of a contract you alledgedly do not have?

As for not having a contract, well that is just crap, you might not have seen one, but your employer will be obliged to supply information about what his employees do for his own insurers.

Even without such an agreed contract, your personal property is just that, and your employers has absolutely no right to its use without your express consent, no matter what he says.
You can provide use of your car, however this would definately have to be written into a contract.

Think about what he is, in effect, saying his legal rights to your property are, he is saying in effect that he can use your posessions at his discretion.

What would your employer do if your vehicle was off the road or completely unsuitable for the task ?

Just take your vehicle off the road and ride in on a small motor bike, your employer is then screwed.
Make enquiries as to wether your employer claims for his own mileage, and that of other employees, and is it possible that he is claiming tax expenses for your vehicle ? If he is and is not paying you then you might well have an even stringer case, and last of all, but likely the first thing you should do -

Seek legal advice.