What's the right pay for an employee's mileage pay?

Question

I have an employee or actually a sub contractor who sometimes will use his own truck for our company. We've been paying him .52 cents per mile which he is quite unhappy with.

Answer 1

The IRS rate per mile is 58.5 cents.  It is not reflective of the reality of mileage expenses.  However, if more is paid, the IRS considers the excess as income.

Answer 2

That's what I get for driving to clients in MA.  I work in one of the so-listed best companies to work for.

Answer 3

Okay, so he's griping about the 6 cents (deductible to him when he files his tax return).  Big deal.  Many companies won't even pay the mileage to their contractors.

BTW, Do you have him on an accountable plan?  If not, what til you give him a 1099-Misc that includes all of the mileage reimbursement--he'll scream even louder then...even though he can deduct the full 58cents on his schedule C.