Mileage Reimbursement – Don’t drive yourself nuts!
Nannies – If you are using your own car to drive your charge to and from lessons, play dates, appointments or any other job related activities, you should be reimbursed for every mile you drive. Properly documented mileage reimbursement is non-taxable, not included in your wages.
With continued gas price increases, the IRS allowed reimbursement rate is updated at least once a year. Announcement of the new rate is usually published in November of the prior year.
“The Internal Revenue Service (IRS) optional standard mileage rate used to calculate the deductible costs of operating an automobile for business in 2013 is 56.5 cents per mile for business miles driven”.
Mileage Reimbursement is designated to cover the cost of gas, maintenance and deterioration of the nanny’s vehicle. Families with young children sometimes add a little extra annual ‘detailing’ of the nanny’s vehicle if it is used frequently.
Don’t hesitate to ask …
In many situations nannies get frustrated with the family’s requests to drive the kids to their different activities using the nanny’s personal car (if mileage is not being reimbursed) and many of them feel shy about discussing this with the family. There is no shame in asking. Let your employer know your concerns.
Also, it is healthy to have mileage reimbursement documented in your written Work Agreement. If this item is not included in yours, this could be the right time to talk about it!
Tips…
- Keep your mileage reimbursement non-taxable! You must maintain a log to document the mileage that is being reimbursed.
- If you are using car seats, make sure you have a professional show you proper installation in your vehicle. Most fire stations will help you out here.
- Keep family emergency contact information, your medical power of attorney, and copies of the children’s insurance information in your car at all times.
- Do the car seats have Child ID labels or pouches? Fill them out!
Drive safe … don’t let the cost of fuel drive you insane!
Blog post created by HomeWork Solutions Inc. (4nannytaxes.com) for Regarding Nannies.
A note about car seat labels…if they aren’t there, make your own! With blank address labels! Attach to back or underside of carseat.
Put the child’s name,birthdate, parent names, and parent phone contact info, plus and allergies to medications, pediatrician name and number. Also “Driver is child’s nanny.”
This way, if you are ever in an accident and unconscious or otherwise unable to communicate ith responders, they can get the information needed about the child, and to contact parents.