Mileage/nanny using her car to pick up child

[Anonymous]

I need some advice please. Our nanny will now be using her own car to pick up my child from school (pick up only). Round trip from our house, its about 3 miles, and she does this 4 times per week. She watches our younger child while our older one is at school.

How much is fair to reimburse her for the mileage/gas/wear and tear, etc for using her own car? I read the IRS guidelines of .56 cents per mile, so that would mean we only give her about $7 per week. That seems maybe too low. Thoughts?

[Anonymous]

The legal way to do it is the IRS guidelines - that amount is designed to cover wear and tear on the car, gas, etc...

But I feel the same as you OP and I tend to round up. I just routinely give the nanny extra money for gas, etc...

[Anonymous]

Anonymous wrote:The legal way to do it is the IRS guidelines - that amount is designed to cover wear and tear on the car, gas, etc...

But I feel the same as you OP and I tend to round up. I just routinely give the nanny extra money for gas, etc...

PP, what would you round up to in my situation? $10? $15?

[Anonymous]

Not pp, but id round up to 10.

[Anonymous]

Anonymous wrote:Not pp, but id round up to 10.

+1

[Anonymous]

I would round up to ten dollars for mileage and gas then add that up to her hourly rate.

[Anonymous]

You have to think about insurance for the car too is not just mile ,gas.

[Anonymous]

There is no need to round up. The IRS guidelines cover wear and tear as well as gas and is a more than fair amount.

She's only driving 12 miles a week for you. Even if she drives a 10 year old gas guzzling SUV, she isn't even using a gallon of gas driving so little. Considering the average price of a gallon of gas in DC is $3.36, $7 is very good.

[Anonymous]

I was paid 55 cents per mile, i dont know the current price, but lets say a nanny drives alot, parents should pitch with other things for nannies car, i used one of my cars for work only and when i need to fix it it was really expensive and i dont know if parents ever think of those extra expenses a nanny have,?

[Anonymous]

The IRS rate compensates for wear and tear, repairs, insurance, and gas. Parents need not pitch in anything more unless they wish to. For example, some parents might want to gift the nanny with a yearly car detailing. They can. But they don't have to, as wear and tear is covered by the rate.

As described above, the IRS rate is almost double the reimbursement for gas. What do you think that extra money is for?

Nannies should keep records of their benefits and realize that the parents have already contributed to car repairs when they reimburse at the IRS rate.

[Anonymous]

Anonymous wrote:The IRS rate compensates for wear and tear, repairs, insurance, and gas. Parents need not pitch in anything more unless they wish to. For example, some parents might want to gift the nanny with a yearly car detailing. They can. But they don't have to, as wear and tear is covered by the rate.

As described above, the IRS rate is almost double the reimbursement for gas. What do you think that extra money is for?

Nannies should keep records of their benefits and realize that the parents have already contributed to car repairs when they reimburse at the IRS rate.

While this sounds logical it is just not true. The IRS rate is appropriate for contractors who drive to and from client sites but was never intended to cover nannies, the government does not hire nannies. My husband drives his vehicle for work (sales) and the insurance coverage is paid by the employer. Particularly because he is an employee rather than a contractor, so the employer is responsible for any accidents for which he is at fault.

[Anonymous]

I tend to over compensate our nanny for most things, but in this instance I would consider doing just the IRS rate because it's a very clear rule - if you decide you want her to use her car more extensively in the future - say take your daughters to play dates or to practices etc, you are going to be in a bind for having over paid the car mileage already

[Anonymous]

You seem to misunderstand the IRS reimbursement rate, 15:01. It doesn't matter what job you do, it covers the reasonable expenses of driving on the job. It sounds like your husband's employer has decided that to retain certain employees it is worth it to offer extras, like insurance payment. Good for him. But you need to understand that is unusual and unnecessary and the IRS rate is standard for a reason. It is fair and sound policy for anyone who drives on the job.

Nannies are not some special class who should get more because they drive on the job.

[Anonymous]

Anonymous wrote:You seem to misunderstand the IRS reimbursement rate, 15:01. It doesn't matter what job you do, it covers the reasonable expenses of driving on the job. It sounds like your husband's employer has decided that to retain certain employees it is worth it to offer extras, like insurance payment. Good for him. But you need to understand that is unusual and unnecessary and the IRS rate is standard for a reason. It is fair and sound policy for anyone who drives on the job.

Nannies are not some special class who should get more because they drive on the job.

Ok, your jab was unwarranted. I don't have any pretensions about being special but I do have a fair knowledge of government contracting. Having answered plenty of RFPs I can tell you government reimbursement rates reflect the needs of the average government contractor, doing a large volume of business over a long term contract making it possible to achieve economies of scale. I can also tell you there are exemptions for solo contractors, such as those for group home workers, that give higher reimbursement for using a personal vehicle. I assume there is an increased risk transporting the mentally ill or individuals with behavioral issues. My point is, the IRS rates are ill fitted for your nannies work tasks compared to the average govt contractor - even the government observes exceptions.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You seem to misunderstand the IRS reimbursement rate, 15:01. It doesn't matter what job you do, it covers the reasonable expenses of driving on the job. It sounds like your husband's employer has decided that to retain certain employees it is worth it to offer extras, like insurance payment. Good for him. But you need to understand that is unusual and unnecessary and the IRS rate is standard for a reason. It is fair and sound policy for anyone who drives on the job.

Nannies are not some special class who should get more because they drive on the job.

Ok, your jab was unwarranted. I don't have any pretensions about being special but I do have a fair knowledge of government contracting. Having answered plenty of RFPs I can tell you government reimbursement rates reflect the needs of the average government contractor, doing a large volume of business over a long term contract making it possible to achieve economies of scale. I can also tell you there are exemptions for solo contractors, such as those for group home workers, that give higher reimbursement for using a personal vehicle. I assume there is an increased risk transporting the mentally ill or individuals with behavioral issues. My point is, the IRS rates are ill fitted for your nannies work tasks compared to the average govt contractor - even the government observes exceptions.

I'm not the poster with whom you're sparring, but I too fail to understand your position. The IRS regulations are extremely clear, are expressly designed to cover wear and tear on a vehicle in addition to direct expenses, and do not distinguish categories of entitlement for additional compensation.

If a given employer chooses to give more per mile, or additional benefits, that's fine, but there is nothing inherently different about a nanny position that changes the applicability of the IRS regulations. Ask any accountant who routinely handles these compensation issues and perhaps that will be helpful.