Tuesday, June 22, 2004
High gas prices make it difficult to work on the road
With gas prices hovering around two dollars per gallon, many employees are finding that it doesn't pay to drive. The Internal Revenue Service currently allows qualifying motorists 37.5 cents per mile of driving and many employers use that figure as a benchmark for mileage reimbursement. The IRS rate is supposed to provide reimbursement for gas consumption and also wear and tear on the driver's vehicle. But a recent look at the figures by the Automobile Association of America (AAA) said that drivers could lose 7 cents per mile on a 2004 Chevrolet Cavalier when fuel, maintenance, insurance and other expenses are added in.
All things considered, many employers are saying "you have to pay to play." However there are some companies that operate in the real world and reimburse mileage fairly. I suggest getting a copy of IRS Publication 463 for tips on how to deduct mileage for business use.
11:56 AM
