Currently we have two vehicles, a F250 and a Nissan Frontier. Since we’ve added 2 employees in the past month our work is a little more spread out. The problem is transporting and storing tools and picking up materials.
We’ve tosed around the idea of reimbursing the guys who provide a suitable work truck (1/2 ton, long bed, ladder racks, basic work model) but are not sure what the best way to implement.
We could buy a company truck but that puts us on the hook for the payments, causes problems with storing during nights and weekends, and IMHO would not get the same treatment by the guys that a personal vehicle would.
We’re thinking a decent truck could be had for $6k, so a fair monthly reimbursement amount would be $100 to $150.
Any suggestions or caveats? Any horror stories?
Jon Blakemore
Replies
I guess that depends on how you define "decent truck"....lol.
I'd look at it a different way, and consider the mileage the employee will be putting on the truck. I believe the Fed up'd the mileage rate to around $0.40 recently, so I'd start there at a minimum, and calc approximate mileage that the employee will put on the vehicle. Bump it up a bit as motivation for them to keep the truck clean and presentable, and throw in a few more schekels if they put company signs on the doors.
Also, check with your insurance company regarding any risks you have by having the employee driving a vehicle he's getting reimbursed for.
Let's face it- while $100/month is better than nothing, at today's gas prices, it doesn't go very far.
Bob
we pay $400 amonth, 0.16 a mile. truck must be white, brand new and every 100,000 mile must be replace. Must have 1 million dollar insurance liability. you basically break even on a $20,000 truck.
Brownbagg,That's pretty nice as it seems that you get paid for your commute.Our employees have a responsibility to get themselves to the job. Most of our work is with a 15 mile radius so I I don't think it unreasonable to expect the employees to be responsible for their communting costs. When we work abroad (20-50 miles) we take care of them one way or another.
Jon Blakemore
Y'all don't wanna know what I get for a car allowance, but let's just say it covers my gas, tolls, insurance, car washes, maintenance, and the ridiculous lease payment on the new Magnum R/T. Could probably get a nice new set of 22" wheels with it too....lol.
Ahhhhhh....management has it's perks.......lol
We already give $30/week gas reimbursement. So the employee is able to apply 100% of the reimbursement amount to the payment (or to pocket if paid off).Good point to check about insurance.
Jon Blakemore
Jon, be careful about paying employees for their trucks and for carrying tools. When you do that, you open yourself up to liability claims that might result from an ordinary traffic accident. If they are carrying your tools, you are liable from the time they leave the house.
That's one reason that I insist that each employee has his own tools. We keep job boxes for supplies and the lead hoses and cords.
blue
Just because you can, doesn't mean you should!
Warning! Be cautious when taking any framing advice from me. There are some in here who think I'm a hackmeister...they might be right! Of course, they might be wrong too!
Blue,IIRC you do some type of fuel reimbursement, right? How do you structure this?
Jon Blakemore