I was wondering if anyone happens to be familiar with any current formulas for reimbursement for driving personal vehicles on the job. In the past the AAA produced an annual formula but I put in a call to them and discovered they no longer publish such info. To complicate matters slightly, in an ideal world, I’d love to find a formula using canadian dollars & kilometers, but in a pinch, an american version will do fine (and I can do the conversion myself), I can’t imagine why it would cost any more/less to drive a car in the USA. So yeah, any formula+cite would be super helpful.
The U.S. Government sets a flat rate for business mileage. The rates change from time to time, and in fact I think they recently went to about $.48/mile because of the spike in fuel costs.
They bumped it up to .485/mile from 9/1/05 through 12/31/05, but dropped it back down to .445/mile for 2006. These are rates the IRS allows businesses to use. According to the IRS,
wicked, thanks everyone! It didn’t occur to me to look for a government/tax rate. It turns out the Canadian Revenue Agency publishes similar figures…problem solved!
Unfortunately, these it’s also the same rate the G reimburses contractors for using their POVs (Personal Owned Vehicles), even when gas prices in your area top $3. Ironically, the reimbursement was highest when prices were below their peak. Like I always tell my government clients, “I pay good money to work here.”
It’s amazing how fast those miles add up. In many cases, it’s cheaper to rent a car and pay for the gas then it is to let employee’s drive their own car.
For instance, where I work we might have 90 mile drive to one of our other sites for a meeting. That’s considered short enough that you would never stay over. The mileage would run $80, while a rental car would probably be $40 with $30 of gas.
Note that these IRS rates are business rates, for driving your personal car on the job (like the OP requested). There is a different rate if you drive your car for a non-profit organization, and want to deduct those milage costs as a charitable contribution on your own taxes. Typically, that rate is around half of the business rate. (In late 2005, it was 34.5¢/mile when the business rate was 48.5¢/mile.)
For those following from home, It’s 50 cents a litre for the first 5000 klicks, and 44 cents/litre after that. If you’re in the territories way up north, you get an extra 4 cents a litre, to compensate for paying over 20 cents/litre more for gas than down south. :rolleyes:
Mithrander: That link was actually very helpful, I had only found the historical rates before, your info is more accurate, cheers!
re: the employers in this thread have that put in their 2 cents…I hope I’m going about all this the right way. I’m not trying to be greedy or anything, I just found that I’m doing a lot of errands for my boss, i.e. driving to the very end of the city to get to the cheapest printer in down, and similar runs, and i think its only fair I request compensation for all that driving time, gas etc.
Depends on the employer. We have two sites and sometimes have to drive back and forth for meetings. We are expected to foot the bill ourselves, and would only ask reimbursement for longer trips, like to training or meetings out of town.
Of course there’s a free town bus that runs relatively frequently so we can usually get by for free if we don’t mind planning ahead.
If you’re working in Canada, you can claim these expenses as tax credits if you’re employer doesn’t pay you for them. Your employer just needs to sign a form … a T something or another (can’t look it up now, have to go to lunch) … and you can claim expenses for business use of your personal vehicle. The number in the link I gave you is for the simple way to calculate expenses … using your detailed mileage logs (which you better keep in case you are audited, that’s one big way they nail people) you multiply that number times your work mileage, and that’s the value of your credit. If you keep receipts and stuff, you can probably claim more using the detailed method. If you’re employer pays less than that, you take the difference between the two as a credit. I’ll look up the link after lunch if you’re interested.
I hope all those x cents/litre prices are supposed to be cents/km – I just paid 82.2 cents per liter to fill my car today, and paying me 50 cents for reimbursement would be no big favor.
Yes, that would be cents per kilometer. I’m going to blame this one on my broken coffee pot, and the unusally high amount of blood in my caffeine system.