Paying mileage.

What is a fair rate to pay an employee mileage using his own truck?

57 1/2 cents per mile according to the IRS.

......well...that is the maximum you can write off. You could pay less. I worked for a company that paid less...so I revolted and rented cars instead.

FYI - There is a rider to get on your auto insurance to cover non-owned vehicles. It's pennies...

I saw that from the irs. It is his vehicle so he can write it off at the end of the year as that deduction, I just want to do something in the meantime.

I think mileage on a non owned vehicle is going to be hard to track. What if he makes a pit stop between jobs? Probably within his rights if he is commission based and not hourly anyway.

I would increase the commission with the understanding it includes his gas and his vehicle. If he gets 30% for the labor end, maybe you give him 50% for his vehicle and truck as well. It probably needs to be an open discussion between you and employee but I think paying mileage on a non owned vehicle is going to be an expensive slope to go down.

That begs the question....is he an employee or contractor?

Bob, I currently trust my only employee. But you are right about he futures. I can always be in charge of calculating it on Google maps and pay it out how I see fit.

I dint want to up his commission because that's permanent, so is mileage, I may just give him a bonus, so I am not obligated to it until I stable out.

Dave, he is an employee. He has to wear a uniform, follow my procedures, show up within Times I mandate, and put in extra hours if needed. Uses my equipment too

Throw Back- Are you working under the advice of a qualified tax attorney or C.P.A? There are many ramifications available to the IRS if you are ever audited. Do you fill out a SCHEDULE C, Form 1099 (http://www.irs.gov/pub/irs-pdf/f1099msc.pdf) , receive a 1099 from a customer? Be very cautious when dealing with the IRS tax code. I was audited a few times and still receive a number of 1099R’s from my bank,military retirement, 401K, and Social Security retirement incomes.

Everthing gets ran by the CPA and if needed a lawyer. I just like kicking ideas around here.

Arizona everyone that is 1099 covers their costs