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Car Allowance

PMPM 7 Posts
in HR & Employment Law Vote Up0Vote Down
The City just appointed a new City Manager. Instead of providing a car the City Council would like to pay the new City Manager a (taxable) car allowance. Their question is when do we pay mileage for out of town travel?

Does anyone have any good language?

Pat
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Comments

  • 2 Comments sorted by Votes Date Added
  • POPEYEPOPEYE 958 Posts
    PMVote Up0Vote Down
    PM, You may want to post this question in another section of the Forum that gets a little more viewing. I would say that you would need to have a written policy stipulating when you will begin to pay mileage, such as any out of town BUSINESS trip over XX miles. I have known of times that when an allowance is given and the travel use is not extensive that no mileage was paid.
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  • dynamite9551dynamite9551 113 Posts
    PMVote Up0Vote Down
    when i worked in manufacturing we paid car allowances to sales and exec. personnel. that expense was intended to cover everything EXCEPT tires; which we reimbursed for every 3 years - anything sooner was out of the allownace. we also required that they carried sufficent insurance coverage equal to what the company would have provided for "leased" autos.

    good luck.
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