Manager Compensation for Use of Personal Vehicle

How do you all compensate your manager for using his or her vehicle to run to home depot or other errands around town?

Thank you,
Jason

Good question, I would be curious what others say.

Personally I don’t see it as a big priority. At a normal job where the employee commutes into work, the employer doesn’t provide compensation for traveling from their home to the office. Likewise, if the manager lives on site, an occasional home depot run is still far less travel than a normal job.

However, for some managers I do provide a monthly reimbursement for travel expenses (~$50+ per month). Also, this isn’t tax advice, but providing a reimbursement may not be subject to taxes. Beware though, formalizing travel compensation may increase your legal liability should an accident happen on a home depot trip, and you may want to discuss this with your insurance agent.

2 Likes

We reimburse at the federal rate.

@Brandon Do you have your manager submit a monthly mileage report then to calculate the reimbursement? I know there are many free apps out there like Everlance which can tally this pretty easily.

Pretty much yes. ,:sunglasses: