If you were to reimburse for mileage

[paulney]

I run a small business, and we have contractors arrive to customers' sites, perform their work and leave. In some cases, where contractors have to drive over certain number of miles, we reimburse them at a standard IRS rate.

This particular contractor performed several days worth of work and submitted her invoice. When we entered it into the system, we noticed an oddly large number of miles she claimed. A quick check via Google Maps showed an extra 40 miles on the invoice.

This is not the first time this happens, and 90% of the time it's contractors erroneously entering data rather than trying to bilk out more money on purpose. I sent her an e-mail, and she quickly revised the mileage to what Google Maps show saying she took the previous readings from the odometer, because she 'had to do some detours due to traffic', but added two bridge tolls, which she previously 'forgot to include'. There's no doubt that the tolls are valid - she had to take the bridges. But it's just the fact that she is nickel-and-diming for every penny, when she is being paid for 1.5 days of work at a very decent rate on the order of 1.5k - it leaves the aftertaste...

Ugh.

Anyways, would you guys pay by the car odometer or what Google Maps show? If I let it slide once, anyone can claim a detour, and I can't verify it in any way.

 

[syee]

I voted odometer. I guess however, I'd probably take Google Maps and perhaps add 10-15% leeway for the distance since like they said, they could have to take a detour, or perhaps they got lost finding a location that does add to the mileage. If they're way off, then I'd start to question it though.

 

[paulney]

Originally posted by: syee
I voted odometer. I guess however, I'd probably take Google Maps and perhaps add 10-15% leeway for the distance since like they said, they could have to take a detour, or perhaps they got lost finding a location that does add to the mileage. If they're way off, then I'd start to question it though.

Yeah, 10-15% is no big deal - we usually round off numbers anyway, and to contractor's benefit, but 40 miles... it's like doing an extra trip to SF for no reason!

Some people...

 

[LilPima]

Whichever is less, the .58 cents a mile is already a lot since gas is down.

 

[wiredspider]

When I've done it for a big company, it has been with mapquest/googlemaps millage.

 

[Linflas]

Google maps may not reflect the actual route taken so I voted for odometer. That is how every company I have ever worked for did it.

 

[geno]

Odometer, but I think Google Maps (or any other mapping site) would be more accurate. Speedometers in most cars are roughly imprecise by about 5% (usually on the higher side of actual speed / distance travelled). I'd trust an actual plot of the route driven to be a little closer than that.

 

[Bignate603]

I've used odometer in the past but if there's a big discrepancy I'd ask them just like you did.

 

[moshquerade]

Originally posted by: paulney
I run a small business, and we have contractors arrive to customers' sites, perform their work and leave. In some cases, where contractors have to drive over certain number of miles, we reimburse them at a standard IRS rate.

This particular contractor performed several days worth of work and submitted her invoice. When we entered it into the system, we noticed an oddly large number of miles she claimed. A quick check via Google Maps showed an extra 40 miles on the invoice.

This is not the first time this happens, and 90% of the time it's contractors erroneously entering data rather than trying to bilk out more money on purpose. I sent her an e-mail, and she quickly revised the mileage to what Google Maps show saying she took the previous readings from the odometer, because she 'had to do some detours due to traffic', but added two bridge tolls, which she previously 'forgot to include'. There's no doubt that the tolls are valid - she had to take the bridges. But it's just the fact that she is nickel-and-diming for every penny, when she is being paid for 1.5 days of work at a very decent rate on the order of 1.5k - it leaves the aftertaste...

Ugh.

Anyways, would you guys pay by the car odometer or what Google Maps show? If I let it slide once, anyone can claim a detour, and I can't verify it in any way.

They're already making bank by using the standard IRS rate of 58.5cents/mi with what gas prices are right now.

 

[Pepsei]

what do people do before the internet?

 

[moshquerade]

Originally posted by: Pepsei
what do people do before the internet?

more sex...

and reading.

 

[kranky]

I'd do what you're doing, using Google Maps to get a ballpark number, then questioning the ones which seem out of line. What I found interesting is that she removed the mileage even though her story about the detours would indicate that it was legitimate.

I agree that it is irritating when people who are making a good wage keep chiseling on expenses. I get so tired of rejecting expense reports where someone wants reimbursed for a Starbucks they bought at 2 PM. You claimed $7 for breakfast when you got it free in the hotel, you claimed $9 for lunch when you actually hit the McD's drive through for $5, so don't ask me to pay for your afternoon Starbucks. You've already cheated to the tune of $11. We don't pay for your Starbucks when you're in the home office, why do you think you should get reimbursed just because you're out of town?

 

[blue703]

wow, for capital one, they only reimburse $0.485/mi. i probably won't get that back for another 2 months.

 

[moshquerade]

Originally posted by: blue703
wow, for capital one, they only reimburse $0.485/mi. i probably won't get that back for another 2 months.

don't feel bad, i get .30/mi even though i've printed out the irs site reimbursement schedule and presented it to them. with gas @ $1.99/gal this is an acceptable rate, but when it was up over $4 i was getting screwed.

 

[tw1164]

Originally posted by: moshquerade

Originally posted by: blue703
wow, for capital one, they only reimburse $0.485/mi. i probably won't get that back for another 2 months.

don't feel bad, i get .30/mi even though i've printed out the irs site reimbursement schedule and presented it to them. with gas @ $1.99/gal this is an acceptable rate, but when it was up over $4 i was getting screwed.

Can't you claim the other 18.5 cents as a non-reimbursed business expense on your tax return?

 

[AlienCraft]

Originally posted by: paulney
I run a small business, and we have contractors arrive to customers' sites, perform their work and leave. In some cases, where contractors have to drive over certain number of miles, we reimburse them at a standard IRS rate.

This particular contractor performed several days worth of work and submitted her invoice. When we entered it into the system, we noticed an oddly large number of miles she claimed. A quick check via Google Maps showed an extra 40 miles on the invoice.

This is not the first time this happens, and 90% of the time it's contractors erroneously entering data rather than trying to bilk out more money on purpose. I sent her an e-mail, and she quickly revised the mileage to what Google Maps show saying she took the previous readings from the odometer, because she 'had to do some detours due to traffic', but added two bridge tolls, which she previously 'forgot to include'. There's no doubt that the tolls are valid - she had to take the bridges. But it's just the fact that she is nickel-and-diming for every penny, when she is being paid for 1.5 days of work at a very decent rate on the order of 1.5k - it leaves the aftertaste...

Ugh.

Anyways, would you guys pay by the car odometer or what Google Maps show? If I let it slide once, anyone can claim a detour, and I can't verify it in any way.

Everybody has that taste when they have to pay but no one has it when invoicing. Get over it.
Ever think she may feel the same way about you re: "nickel and dime"?

The reason I voted Google Maps, is that the other way, leaves it open to what you just discovered, that if they can add in some errands, you'll probably pay for that mileage too.
Doing it via Google Maps eliminates all of that, and quantifies it in a neutral, third party manner.

 

[Chryso]

Originally posted by: moshquerade

Originally posted by: Pepsei
what do people do before the internet?

more sex...

and reading.

I know who I am inviting over next time my internet goes out.

 

[ViviTheMage]

odo
from point a to b

 

[dullard]

For employees, I would trust them at their word. If they are so untrustworthy about something minor like that, then why are you still employing them?

For contractors, it should be built into their cost. You pay them one fee for one job. It shouldn't matter if they drove 10 miles or 100 miles. They should properly account for their mileage when they negotiate the fee for that service to your company. The mileage and deduction should be handled by their own buisness, not yours. It is a minor difference anyways. 40 miles is just over $20 on a $1500+ contract. It is really not that important.

For example, are you going to start reimbursing UPS for every mile they drive when you contract them to deliver your package? Nope. That is already built into their price.

 

[slag]

Originally posted by: moshquerade

Originally posted by: paulney
I run a small business, and we have contractors arrive to customers' sites, perform their work and leave. In some cases, where contractors have to drive over certain number of miles, we reimburse them at a standard IRS rate.

This particular contractor performed several days worth of work and submitted her invoice. When we entered it into the system, we noticed an oddly large number of miles she claimed. A quick check via Google Maps showed an extra 40 miles on the invoice.

This is not the first time this happens, and 90% of the time it's contractors erroneously entering data rather than trying to bilk out more money on purpose. I sent her an e-mail, and she quickly revised the mileage to what Google Maps show saying she took the previous readings from the odometer, because she 'had to do some detours due to traffic', but added two bridge tolls, which she previously 'forgot to include'. There's no doubt that the tolls are valid - she had to take the bridges. But it's just the fact that she is nickel-and-diming for every penny, when she is being paid for 1.5 days of work at a very decent rate on the order of 1.5k - it leaves the aftertaste...

Ugh.

Anyways, would you guys pay by the car odometer or what Google Maps show? If I let it slide once, anyone can claim a detour, and I can't verify it in any way.

They're already making bank by using the standard IRS rate of 58.5cents/mi with what gas prices are right now.

Not really.. Its not just fuel they are paying for, its wear and tear on their vehicle, oil changes, tire changes/balances/rotations, etc.

 

[DisgruntledVirus]

Just out of curiosity, what about asking them to carry a GPS device that tracks the vehicle (like what parents can buy for their kids)? If they want reimbursed for mileage, okay but you will go by whatever the device reports useage is. Make sure there is a way to turn it on/off and I don't see any reason why this wouldn't work (provided there was software/hardware that allowed you to track and record mileage).

If that won't work, then use what G-maps says. With gas prices they way they are currently, I wouldn't add 10-15% for detours. If you reimburse at the IRS price, and their car gets 20 mpg then they get ~17 *free* miles every gallon (minus wear and tear/maitnence stuff) so to speak. If gas goes back to $4/gal then add a 10-15% addition to what mapping software says.

 

[mugs]

Originally posted by: slag

Originally posted by: moshquerade

Originally posted by: paulney
I run a small business, and we have contractors arrive to customers' sites, perform their work and leave. In some cases, where contractors have to drive over certain number of miles, we reimburse them at a standard IRS rate.

This particular contractor performed several days worth of work and submitted her invoice. When we entered it into the system, we noticed an oddly large number of miles she claimed. A quick check via Google Maps showed an extra 40 miles on the invoice.

This is not the first time this happens, and 90% of the time it's contractors erroneously entering data rather than trying to bilk out more money on purpose. I sent her an e-mail, and she quickly revised the mileage to what Google Maps show saying she took the previous readings from the odometer, because she 'had to do some detours due to traffic', but added two bridge tolls, which she previously 'forgot to include'. There's no doubt that the tolls are valid - she had to take the bridges. But it's just the fact that she is nickel-and-diming for every penny, when she is being paid for 1.5 days of work at a very decent rate on the order of 1.5k - it leaves the aftertaste...

Ugh.

Anyways, would you guys pay by the car odometer or what Google Maps show? If I let it slide once, anyone can claim a detour, and I can't verify it in any way.

They're already making bank by using the standard IRS rate of 58.5cents/mi with what gas prices are right now.

Not really.. Its not just fuel they are paying for, its wear and tear on their vehicle, oil changes, tire changes/balances/rotations, etc.

No really, that stuff plus gas doesn't add up to nearly $58.5 cents/mi these days.

 

[Kelemvor]

I always wrote down my exact mileage and submitted that. I'd use Google Maps if I had forgotten for some reason.

But I also would just drive to specific places so we had a grid of actual mileage to fo between sites and such so no one could ever cheat.

I'd just bring it up to the person and show them the GMaps info and ask her why her's is so far off. As for a detour, a 40 miles detour? I don't think so.

 

[Injury]

Originally posted by: Kelemvor
As for a detour, a 40 miles detour? I don't think so.

This. Either she's full of shit or she wrote something down wrong. I'm willing to bet she wouldn't have said anything if she actually got paid for it either, but what amounts to about $20 is almost not worth the hassle as long as it is an isolated incident.

If a company is going to offer to reimburse for transportation expenses then it's certainly within reason that she would try to get it 100% covered but I agree with the person that said it should be worked in to their contract costs. If they don't account for it then it's not your fault, really. That being said, any oversight or attempt to tack on a bit should be taken as an insult considering you don't HAVE to compensate for squat.

Pay the woman her re-submitted claims, but you should double check EVERYTHING that is submitted with Google maps and question any variance over 5 miles. 5 miles is the limit for what I'd consider a detour and you can easily get lunch 5 miles total from most places you are working from.

 

[SunnyD]

In cash.