Post-Covid construction practices present some changes that were not anticipated in 1969 when the core…
The Business World, It Is A’changing
A client recently called to discuss workplace and remote policy issues and how best to memorialize those policies. In a world that is relying upon remote work more and more, one of the questions asked caused me to dig into vehicle and mileage policy models. Long ago, and far away, when I first started practicing law, the IRS mileage rate was in the 20 cents per mile range. Currently, it is 65.5 cents per mile. What does this mean for your business?
One article I reviewed suggested that if an employee drives more than 100 miles per year for strictly business purposes, then the employer should consider providing them with a company vehicle. My knee jerk reaction was, “that is ridiculous,” and even after applying my calculator, it seems a serious stretch. I would think more in the 10,000 miles per year range where the combined costs of maintenance and mileage would exceed the value of the vehicle within a five year period.
But, the point remains, as the cost of transportation, and specifically, driving, increases, have you looked at the cost proposition between using personal vehicles, rental vehicles, or company vehicles, in terms of how you handle business-related costs and expenses? And, whichever model you are using, do you have policies in place to protect the company in the event of an accident during a “for business” use of a vehicle? If not, you may want to consult your CPA and your attorney to think through the cost/benefit analysis of the various options, and to confirm that you have employment policies in place to best protect the business.