Covering Employee's Mileage
My question involves employment and labor law for the state of: NC
A good friend of mine works for me. Occasionally our business has events away from our office (about 35 miles away from our office). I just learned that when she was working at this off-site location, she was charging us for the time commuted in addition to her actual work hours. She did this in order to cover her extra gas and wear on her car. I am at fault for not keeping a closer eye on her hours and catching it earlier.
There were occasions that she was using her own car to transport material from our office to the site. In this case, I expected that she would charge for the time. However, she has also been charging us for her commute.
I am wondering:
1. Do I have an obligation to pay her for extra travel when working someplace other than our office? Or would we be obliged to pay her only if she is using her vehicle to transport our materials?
2. If we did want to help her out with the extra miles (or are legally bound to), we do this through reimbursing her mileage (at .58/mile, I believe), not paying for her commute time, correct?
3. If we do pay the mileage, will we still be paying our usual payroll taxes, etc for this extra amount?
Thanks!
Re: Covering Employee's Mileage
Basically the travel time from home to job and back is not work time, no matter where the job site is located...
785.35 Home to work; ordinary situation.
An employee who travels from home before his regular workday and returns to his home at the end of the workday is engaged in ordinary home to work travel which is a normal incident of employment. This is true whether he works at a fixed location or at different job sites. Normal travel from home to work is not worktime.
http://www.dol.gov/dol/allcfr/ESA/Ti.../Subpart_C.htm
Re: Covering Employee's Mileage
Thank you for the information. I thought this was the case, although my employee feels that it is unfair. To be kind, we went ahead and paid her for the hours anyways for this payroll and told her that it will be handled differently in the future.
Does anyone know about payroll taxes on mileage compensation? It seems that we wouldn't be taxed for that while we are taxed for the hours.
Also, If our employee drives materials using her car from our office to the off-site location, do we pay her for the hour drive AND mileage since she is using her car and working?
Re: Covering Employee's Mileage
Taxable compensation for time worked is a separate issue from whether or not mileage reimbursement (and other expense reimbursement plans) are taxable or not.
Relative to mileage, IF the mileage is for business purposes, the employer can reimburse up to $.585 per mile without being taxable (and of course, the business purpose is substantiated).
Your state does not require mileage reimbursement or any other type of reimbursement for personally incurred business expenses at all.