2010 Mileage Reimbursement Rate
The IRS has announced that the approved reimbursement rate for employee use of his/her personal vehicle for work purposes will be $0.50 per mile, down from the 2009 rate of $0.55 per mile.
According to the IRS, "The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago."
Mileage reimbursement is typical when a nanny uses her personal vehicle to transport her charges to/from school and activities, or when a household employee uses their personal vehicle for employer errands (grocery, dry cleaning, etc.) in performance of their duties. It is also customary for the employer to provide the necessary child safety restraints, and to insure the nanny is fully trained in their installation. Mileage reimbursement does not include the nanny's commuting mileage to/from her home to her place of employment - if such a stipend was paid it is considered taxable income to the nanny.
Not all nannies will agree to use their personal vehicle for these purposes due to liability issues and the additional insurance expenses the nanny would incur to insure this liability. Additionally many families prefer to provide the nanny a vehicle so they are certain of the mechanical condition of the vehicle and that child safety seats are properly installed, not being put in and pulled out of the vehicle all the time.
According to the IRS, "The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago."
Mileage reimbursement is typical when a nanny uses her personal vehicle to transport her charges to/from school and activities, or when a household employee uses their personal vehicle for employer errands (grocery, dry cleaning, etc.) in performance of their duties. It is also customary for the employer to provide the necessary child safety restraints, and to insure the nanny is fully trained in their installation. Mileage reimbursement does not include the nanny's commuting mileage to/from her home to her place of employment - if such a stipend was paid it is considered taxable income to the nanny.
Not all nannies will agree to use their personal vehicle for these purposes due to liability issues and the additional insurance expenses the nanny would incur to insure this liability. Additionally many families prefer to provide the nanny a vehicle so they are certain of the mechanical condition of the vehicle and that child safety seats are properly installed, not being put in and pulled out of the vehicle all the time.
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Want to learn more about the "nanny tax" and the employer's legal and financial obligations? Download HomeWork Solutions' free e-Book, the Nanny Payroll Tax Quick Start Guide. |
posted by Kathleen Webb at
9:14 AM
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