IT Employment

Ask something
Discussion Locked

Good Job Offer?

0 helpful
10 replies

by mjromano

Closed to new repliesThis discussion is closed. It stays readable, but it takes no new replies.

Hey everyone, a few weeks ago I was unfortunately laid off from my job as a Network Admin. After submitting what seems like 500 resumes in the interim, I finally got an interview with an IT consulting company. The interview went well and they ultimately offered me the job. What I'd basically be doing is driving to their clients and fixing any issues they may have (unless it can be fixed in house remotely). 90% of their clients are within a 20 mile radius, while there are a few that are in Delaware and NJ (I live near Philly).

They will be paying me a comprable salary to what I was getting and also will be paying my cell phone bill, providing me with a laptop, and reimbursing me for gas. Does this sound like a good deal / does anyone do something similar? The main thing I'm worried about is putting a ton of miles on my Z.

Any insight is appreciated.

10 replies

by gshort

What's the downside? In today's economy you should be glad you got the offer. I'm new on my job and worrying about a layoff too. I would run with it, and maybe set yourself up for starting your own company!

by jck

it sounds pretty good. Is it guaranteed length of term? or "as needed"?

by jamesrl

Red Flag, Red Flag!!!

I've driven a lot for various employers, and its always with a mileage rate that is much higher than the cost of gas. This is to compensate for the increased costs associated with travelling for work - additional maintenance, insurance, wear and tear etc. Currently my company's rate is 36.5 cents per mile (US rate), and I wouldn't say our rate is higher than average.

I would seriously do the math on the travel. If your maintenance bills increase substantially, will you be able to afford it?

James

by ganyssa

Typically if we ask people to drive for the job here, we assign them one of our fleet cars, but there are times that we don't have one available, or an employee simply prefers to drive their own car.

We reimburse the employee for gas if they use a fleet car - typically we pay our own expenses as we go and then turn in the report after the fact. If you drive your own car, you are reimbursed at a flat rate per mile, which is currently 39 cents.

by oz_media

Exactly, I used to get 47cents kilometer, but aske dthem to pay me a fixed flat rate for the month instead. Whether I am out or in the office, I still need business use insurance and have to pay to cover additional theft in case stock is stolen($30K theft coverage).

I currentlty get just over $500.00/mo for car allowance but this will go up if I take a new contract in the New Year, it's just too expensive drivign every day and just being reimbursed for gas.

Mind you, a lot of companies that only have you out once in a while will offer gas reimbursement or a company gas card for such trips. If you are on the road all the time, a better deal needs to be worked out.

by oz_media

YOU MAY be able to write of fa portion of your insurance and lease cost (if any). Whil eth eocmpany reimburses you for gas, you can't claim mileage but sometimes you will be able to claim expenses like your lease etc. if the mileage constitutes around 80% of your total driving.

My employer gives me a large car allowance, I asked for it instead of mileage. It is initially untaxed and I write off my vehicle and all related expenses so that still I come out on top when it is tax time.

Other than that, little tax nit picking, it sounds like a fair deal, depending on how much the offer you for gas, whether a per kilometre/mile rate or simply reimburse you for your receipts.

Freedome and getting out of the office is always nice too, nothing better than a 3 hour traffic jam when you are out seeing clients!
:D

by nicknielsen

It sounds like a great offer; were I unemployed, I would probably jump on it. As for miles on the Z, even within a 20 mile radius, you may find yourself exceeding 100 miles/day, so the miles will add up.

The IRS sets a mileage reimbursement rate and adjusts it periodically. This rate is intended to cover the costs of using your car for business: gas, insurance, normal maintenance, wear and tear, and depreciation. If you are not being reimbursed for your mileage at the Federal rate, you can take a deduction on your taxes.

Record all business-related mileage. I used to use my trip odometer. Zero it at the beginning of the trip and note the total miles at the end of the day; travel to meals is included. If you are working from home, you must deduct commute mileage. Ask your employer what their standard is (usually not more than 10 miles one way) or consult with your tax preparer. If you work from your employer's premises, you don't need to deduct the commute. I used a simple vertical spreadsheet to record the actual miles traveled, automatically deduct the commute and calculate the claimed miles and reimbursement.

Record the amount reimbursed by your employer from your expense checks or pay statements.

At the end of the year, provide this information to your tax preparer. The deduction can be substantial. I drove over 52k miles in the 2007 tax year and this was my second-largest deduction, behind home mortgage interest.

If you find yourself putting more miles on the Z than you intend, you might consider leasing a car. A good part of this (but possibly not all) will also be deductible on your taxes; in this case an economical vehicle will be to your financial advantage.

Edit: If you want a copy of the spreadsheet I used or have other questions, send me a message and I'll do my best. But your tax preparer may be a better choice. ;)

by oz_media

He's not talkign about collecting mileage as most people would, simply a gas reimbursement, VERY different.

also if you are paid less than the fed allowance for milage, you are supposed to have a form (J2200I?) (or access to a letter from your employer, if requested) explaining why your cheap a$$ed employer will not pay the minimum mileage allowance.

Most guys don't sign these and will simply pay you the minimum, just as with employee averaging agreements to avoid paying overtime.

by nicknielsen

If he uses his personal vehicle for work and is not reimbursed per mile at the current federal rate, he has an un-reimbursed business expense. He can claim the difference between his reimbursement and the federal mileage rate as a deduction. I think the only limitation is that it must exceed a threshold of 2% of net taxable income.

No documentation is required other than a record of his miles and pay or expense check stubs that show the amount he is reimbursed. Any remotely competent tax preparer will have no problem with such a deduction.

by dr dij

he just may have said gas money but meant mileage.

you need to tell insurance company if driving for work also. could up rates slightly.

This discussion is closed to new replies.