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What should I charge for this?

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Hello, very soon I am going to be hired as an on-call pc tech. Each site that I am going to be responsible for is 50-100 miles away from me. The company wants to keep it simple and include the milage pay in my hourly wage. They want me to suggest an hourly wage. What would a good number to suggest per hour be? Thanks guys, this site rocks!

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by jamesrl

Thats a bad game to play.

Your mileage would be no doubt vary from week to week. Why should you make less or more based on where the calls are?

Sounds to me like a recipe for diaster.

You should investigate what mileage rates are out there. Don't forget that they include more than the cost of gas. They include depreciation, insurance and wear and tear on the vehicle.

So let me do the math. My company pasy 42 cents Canadian per kilometer. That would be .357 USD per kilometer or .357 per .62 miles or .565 USD per mile.

If you make 5 50 mile trips and 10 100 mile trips in a week, that would be 1500 miles or about 750 $. Seems like a lot perhaps, but thats standard rates (my company is US based). Of course it could be less, it could be more but thats the point - you could lose big time by being pinned to one hourly rate.

The cheaper alternative would be for them to provide you with a car. Have them buy a small car and insure it for you, and let you submit expenses for gas.

James

by alpearson82

There is no chance for a company car here unfortunitly. So, any idea what a base hourly wage would be, just for work and no mileage?

by jamesrl

You will need to estimate how much time and distance you will spend travelling, and add that to your hourly rate.

I don't know if you will be travelling to one site a day or several, and that obviously makes a difference. If you were going to travel 100 miles in the morning, work for a few hours, and then travel 100 back, thats roughly 4 hours travel time (assuming you aren't in traffic jams), plus 200 miles (lets say .50 cents a mile, nice round number) or $100. Spread that $100 across the number of hour you expect to bill.

Like I suggested, it doesn't sound like a workable solution.

But cars cost money, and doing that amount of driving will wear down the most reliable of cars. My insurance rates are based on the amount of driving I do, so insurance would also increase. If your car is in the shop, what will you do?

You might ask jdclyde he does something similar.

James

by hal 9000

Here Mileage isn't considered by the Tax Man as Income so you are not taxed on it but if it's included in the salary then you get top pay tax on the mileage.

You'll need to ask an Accountant what it's worth and is it Legal where you are.

I'm betting though if you just get a set Salary the Tax Man will not accept deductions for your vehicle as a valid Tax deduction as there is no proof that you require this for work.

Here I supply cars for the staff and Fuel Cards so they fill up from one brand of Service Station and I get a monthly bill for each car. Even then I have to take into account Service Times and other Down Time Issues which have to be slotted into the schedule and worked out.

If you have 1 site 100 miles away that is a 200 mile round trip and just if you consider the price of fuel today that a lot of money to be pouring into the car not to mention if you destroy a tire or something else along the way because of bad roads.

Then one of the cars was written off by a truck hitting it when it was stationary and unattended on site so the guy driving it had to get back. That was no mean feat.

If you are travelling this distance do the company expect you to pay for accommodation as well for any overnight stays?

Personally as an employer this is a great idea as I save heaps of money no matter how much the employee thinks that they need to run a car it really costs much more and if I was nasty I could with the current Laws even dictate what I paid my workers to drive their own cars. But I'm not interested in ripping off my workers and it's really much cheaper for me to buy them cars replace them every 4 years or so than to pay Mileage Allowances at the current rate. Which now I have no idea of what they actually are but here because we work in Kilometres I think that people who use their own cars are getting about 35 cents per kilometre and if they leave from home to go on site they get paid from the time that they leave home till they return. So they not only get paid Millage but Driving Time as they are working while driving to the site.

Col

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