Tuesday, May 23, 2006
More Pressure to Increase the IRS Standard Mileage Rate
Senator Evan Bayh (D-Ind) on May 4 asked the Internal Revenue Service (IRS) to increase the current mileage reimbursement rate from 44 cents per mile to 48.5 cents a mile. Unlike many of the other plans before Congress to address rising gas prices, the Administration could act immediately, without a Congressional vote. There is a precedent for such action, most recently the IRS' temporary reimbursement rate increase last fall in response to disrupted supplies in the wake of Hurricane Katrina. Senator Bayh argues that the "mileage reimbursement rate should reflect actual [automobile operating] costs to taxpayers."
Senator Bayh's request comes on the heals of a similar request May 1st by the president of the National Treasury Employees Union to raise the standard reimbursement rate to 60 cents per mile.
Most nannies and housekeepers who use their personal vehicles to drive their employer's children or run errands are reimbursed for their business travel at the IRS standard mileage reimbursement rate.
Senator Bayh's request comes on the heals of a similar request May 1st by the president of the National Treasury Employees Union to raise the standard reimbursement rate to 60 cents per mile.
Most nannies and housekeepers who use their personal vehicles to drive their employer's children or run errands are reimbursed for their business travel at the IRS standard mileage reimbursement rate.
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The wear and tear that is placed on a nanny's car then using it for work purposes is obscene. Gas isn't even the factor that comes into play that I'm worried about....
When I had to use my own car in a previous nanny position (now I have a nanny vehicle supplied by the family), there was gum stuck to my seats, a milkshake spilled on the floor, stickiness everywhere, a long back mark made down the side of my car from a child's backpack, the lights in the rear seat area of the car no longer worked from being clicked on and off a million times, the storage compartments had been damaged from being kicked and open and closed too many times, not to mention the constant dirt that was tracked into my car and left on the seats and ground into the seat infront of the children.
I could easily put on 300 miles per week at the above position which added up and limited my car's lifespan HUGELY. And it's not like I could go buy a new car at Target for $9.99 when that one was worn out from the use of someone else's family, their errands, and their children.
I firmly believe that if a family wants a nanny to drive their children or do their family errands, then the family should be responsible for suppliying the vehicle, as $.445/mile doesn't even begin to cover what I had to eventually spend on my car because of using it for work purposes.
When I had to use my own car in a previous nanny position (now I have a nanny vehicle supplied by the family), there was gum stuck to my seats, a milkshake spilled on the floor, stickiness everywhere, a long back mark made down the side of my car from a child's backpack, the lights in the rear seat area of the car no longer worked from being clicked on and off a million times, the storage compartments had been damaged from being kicked and open and closed too many times, not to mention the constant dirt that was tracked into my car and left on the seats and ground into the seat infront of the children.
I could easily put on 300 miles per week at the above position which added up and limited my car's lifespan HUGELY. And it's not like I could go buy a new car at Target for $9.99 when that one was worn out from the use of someone else's family, their errands, and their children.
I firmly believe that if a family wants a nanny to drive their children or do their family errands, then the family should be responsible for suppliying the vehicle, as $.445/mile doesn't even begin to cover what I had to eventually spend on my car because of using it for work purposes.
If bestinthemidwest had been compensated for the 300 miles a week she drove her vehicle for her employer's convenience, she would have been reimbursed $6942 in a year. That would go a long way to cover wear and tear in addition to gas/maintenance.
This nanny does share a common point of view in the nanny community. If the family wants the nanny to run errands and drive children to various after school and enrichment activities, the family should supply the vehicle.
I would add as a parent this is a good idea too as you KNOW the condition of the vehicle and you are responsible for the brakes, tires, ect. and have the correct size car seats properly installed.
This nanny does share a common point of view in the nanny community. If the family wants the nanny to run errands and drive children to various after school and enrichment activities, the family should supply the vehicle.
I would add as a parent this is a good idea too as you KNOW the condition of the vehicle and you are responsible for the brakes, tires, ect. and have the correct size car seats properly installed.
Sounds like BestInTheMidwest needs some professional development to learn how to be an effective nanny and set appropriate boundaries.
I used my own car in my last position that lasted for eight years and I had NO PROBLEMS because I raised 'my' kids to be well behaved and respectful.
First off, I didn't allow gum in my car (or anywhere else if I could help it) nor did I feed them junk food like milkshakes and other sticky things (as most junk food is). In fact, I did not allow them to eat in my car at all, except on the extremely rare occasion - instead, I taught them patience and delayed gratification.
As far as damage to the car, I never had that problem. I did not ever allow destruction or misuse of property - instead I taught them that being in my car is a privilege and to be respectful of property.
Also, while dirt will always follow children wherever they go (and I knew this going into the job), I never had a problem with excessive dirt - instead, I taught them to be conscientious, think ahead and clean their shoes (or whatever) before getting the car and certainly to never put their dirty shoes on the seat (front or back). I also kept a towel in the car to help in this matter.
I, also, put many miles on my car (though, not quite that much), especially over the 8 yrs. I did not have an expensive car and it got good gas mileage. So, even when gas hit the $3/g mark, I knew I was getting a better deal than my bosses... My boyfriend, insisting I was being 'ripped-off' by the IRS standard reimbursement, sat me down and calculated all of my expenses, and I mean ALL. He was bound and determined to make an exaggerated point. It turned out that, after all his figuring and calculations, I was actually making a decent profit (much to his chagrin).
I had that car for ten years and when I sold it, it was still in very good condition for its age. The next car I bought was only $1,500 more than I had paid for the other and it got even better gas mileage. My reimbursements more than covered it.
So, you see, the problem BestInTheMidwest has with the IRS standard reimbursement is not actually the amount of the reimbursement but, instead, her ineffectiveness as a nanny and, possibly, her choice in cars.
But, all this aside, I FIRMLY believe that a car should definitely be provided by the employer. This way, the employer has control over the safety of the vehicle (including the installment of the safety seats - which the parents should keep check of) and is notified of some possible violations. Also, it eliminates the risk for the nanny being sued for an accident due to improper upkeep of the car or for payment over and above the insurance limits. I have heard of several "fantastic" relationships that suddenly turned ugly because of an accident.
I used my own car in my last position that lasted for eight years and I had NO PROBLEMS because I raised 'my' kids to be well behaved and respectful.
First off, I didn't allow gum in my car (or anywhere else if I could help it) nor did I feed them junk food like milkshakes and other sticky things (as most junk food is). In fact, I did not allow them to eat in my car at all, except on the extremely rare occasion - instead, I taught them patience and delayed gratification.
As far as damage to the car, I never had that problem. I did not ever allow destruction or misuse of property - instead I taught them that being in my car is a privilege and to be respectful of property.
Also, while dirt will always follow children wherever they go (and I knew this going into the job), I never had a problem with excessive dirt - instead, I taught them to be conscientious, think ahead and clean their shoes (or whatever) before getting the car and certainly to never put their dirty shoes on the seat (front or back). I also kept a towel in the car to help in this matter.
I, also, put many miles on my car (though, not quite that much), especially over the 8 yrs. I did not have an expensive car and it got good gas mileage. So, even when gas hit the $3/g mark, I knew I was getting a better deal than my bosses... My boyfriend, insisting I was being 'ripped-off' by the IRS standard reimbursement, sat me down and calculated all of my expenses, and I mean ALL. He was bound and determined to make an exaggerated point. It turned out that, after all his figuring and calculations, I was actually making a decent profit (much to his chagrin).
I had that car for ten years and when I sold it, it was still in very good condition for its age. The next car I bought was only $1,500 more than I had paid for the other and it got even better gas mileage. My reimbursements more than covered it.
So, you see, the problem BestInTheMidwest has with the IRS standard reimbursement is not actually the amount of the reimbursement but, instead, her ineffectiveness as a nanny and, possibly, her choice in cars.
But, all this aside, I FIRMLY believe that a car should definitely be provided by the employer. This way, the employer has control over the safety of the vehicle (including the installment of the safety seats - which the parents should keep check of) and is notified of some possible violations. Also, it eliminates the risk for the nanny being sued for an accident due to improper upkeep of the car or for payment over and above the insurance limits. I have heard of several "fantastic" relationships that suddenly turned ugly because of an accident.
I am planning on purchasing/leasing a car for my nanny job as the baby is growing up and will be in need of outside activities. Can i deduct my lease as an expense?
Marissa, your car lease is not deductible. However, as an employee you may be entitled to mileage reimbursement for the business use (not commuting) of your car. Miles driven with your charge, running errands for your family, etc. are a legitimate employee expense and most families work out a reimbursement plan. It cannot exceed $0.505 per mile, or the amount over that is deemed taxable income, with the necessary employment and income taxes due.
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