Reimbursing Nanny Who Drives?

[Anonymous]

Nanny, using her own car, drives 8 month old to library/playgroup 3 times a week. Drive is less than 1 mile each way. Driving is a service listed in nanny contract, but reimbursement wasn't covered because original plan was for nanny to use family car. Now that nanny is using her own car, how should she be reimbursed? IRS rate? IRS rate plus fee for gas? Flat fee (that will be taxed)? Cash?

[Anonymous]

We paid our nanny $40/week in gas money for using her own car.

[Anonymous]

Why does Nanny use her own car? Does she feel safer?

[Anonymous]

OP here -- parents thought one could take the metro and then one of their jobs moved, so both need to drive to work.

[Anonymous]

We prefer the IRS rate since it's not taxed. However, you do have to keep mileage records. If its easier, and the mileage is consistent, you could do a flat reimbursement, but I'd err on the side of overpaying the IRS rate since it will be taxed.

I'm not crazy about just reimbursing gas, since you still have the hassle or record keeping, but the nanny isn't paid for wear and tear on the car.

There's no need to reimburse for gas plus IRS rate, gas is included in the rate. (That's not to say you can't reimburse over the IRS rate, if you want to, but the overage is taxed, and keeping records of the gas money would have no real purpose)

[Anonymous]

Anonymous wrote:OP here -- parents thought one could take the metro and then one of their jobs moved, so both need to drive to work.

In that case, I'd be very generous with your offer to compensate her.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here -- parents thought one could take the metro and then one of their jobs moved, so both need to drive to work.

In that case, I'd be very generous with your offer to compensate her.

Can you explain why? Nanny has zero problem using her car, according to nanny. And what does "generous" mean for about 6 miles a week?

[Anonymous]

You only need to pay the IRS rate. It includes gas and wear and tear on her car.

[Anonymous]

Anonymous wrote:Why does Nanny use her own car? Does she feel safer?

Liability reasons.

[Anonymous]

IRS rate.

[Anonymous]

$10 wk

[Anonymous]

Our nanny has always used their own car. We have always paid a gas stipend of $20-$40/week. We feel better with this arrangement because if the nanny should ever accidentally hit another car or injure a person, we would prefer that she not do so with our vehicle for liability reasons.

[Anonymous]

IRS really doesn't include wear and tear, because you never know what that could be! If she gets a flat tire or god forbid has an accident, parents should be liable for that! Really take your time and configure those things in and just use your common sense-what would you expect if it were you?

[Anonymous]

Since the distance is so low, I would offer a small weekly amount to cover her gas and mileage.

Probably an extra twenty a week.

[Anonymous]

Anonymous wrote:Nanny, using her own car, drives 8 month old to library/playgroup 3 times a week. Drive is less than 1 mile each way. Driving is a service listed in nanny contract, but reimbursement wasn't covered because original plan was for nanny to use family car. Now that nanny is using her own car, how should she be reimbursed? IRS rate? IRS rate plus fee for gas? Flat fee (that will be taxed)? Cash?

IRS rate includes gas. This would be the best and most convenient without having to decide on any other details, since it covers gas and wear and tear on car. Or you could just ask her to continue to use the family car if that is an option (like if the car still works). There should be no reason that she needs to use her car if you have one for use and were covering everything on it. I would prefer using the family car myself actually.