Posted by NJDiva on 12/5/11 9:30pm
Msg #405841
Charging Mileage...
I did closing for a local title company. They told me they pay $XXX plus mileage. I never really charged for mileage. Can someone share some tips on how to determine that number?
1) From my office to their office (14 miles) to pick up doc's.
2) Their office to the closing (15 miles)
3) From my office to their office then to the closing then back to their office?
4) $.52 a mile? (isn't that the Federal exemption amount?)
Since it was Friday, I had to make a special trip to drop the package back to them at their office today (28 miles roundtrip.) wouldn't that be considered part of the mileage calculation?
Any suggestions, experience or comments?
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Reply by Doris_CO on 12/5/11 10:04pm
Msg #405844
I wouldn't have any idea what you should charge. It really depends on your relationship with this title company and if you think you'll get more business from them with the same financial setup. If that's the case, you might want to come up with a standard mileage fee instead of trying to figure out how many miles you've traveled.
IRS increased the mileage rate in the middle of the year to 55.5 cents. Here is the web page explaining the increase.
http://www.irs.gov/taxpros/article/0,,id=156624,00.html
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Reply by bob/IA on 12/5/11 10:06pm
Msg #405845
The IRS says it costs you $.52 for each mile you drive. That is your out of pocket expense, you also have time involved while driving that is not included in the $.52. IMO you need to charge more than .52 per mile when charging by the mile. IMO $.75-$1.00 is the range , at least for me. Yes the drop off trip counts also.
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Reply by JulieD/KS on 12/6/11 9:28pm
Msg #405924
Actually, what the IRS allows you to deduct per mile isn't what they say it costs to operate your car. It's just the amount they allow you to deduct on your taxes for each business mile. Your cost to operate the car could be higher or lower, depending on the type of car you drive and how much you drive. Regardless, you still can only deduct the amount the IRS sets for the year, which for 2011 is 51 cents. Here is an article about the standard mileage rate: http://www.irs.gov/newsroom/article/0,,id=232017,00.html
Here is an article from AAA showing what they have calculated as the cost-per-mile to operate a car: http://www.aaaexchange.com/main/Default.asp?CategoryID=16&SubCategoryID=76&ContentID=353
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Reply by Lee/AR on 12/6/11 6:31am
Msg #405855
imho, this is one of those 'you gotta do the math' situations and take into account all the factors. First, how much or little are you being paid for these? Is the fee enough to include all the TIME involved? You said you didn't charge for mileage...meaning you left money on the table. If the fee you receive is enough to pay for ALL your time, just add IRS mileage fee RT.
Interesting side note: Many years ago, I worked on a 'contractor' basis for state government, but was paid by the Federal government on a Time & Mileage basis. They paid waaaay more on mileage than the 'IRS-mandated allowable mileage deduction'. About double, if memory serves. Difference being considered not allowable mileage deduction, but income.
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Reply by MW/VA on 12/6/11 8:56pm
Msg #405922
IMO there are payments for mileage & payments for travel fees--two different things.
I think some notaries calculate say $1 mile for mileage fees. You don't have to base it one the federal standard.
I had a courier job at a bank a while back. They paid me mileage over & above the federal amt. I had to claim the difference as income.
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Reply by NJDiva on 12/6/11 9:39pm
Msg #405926
Thanks everyone! :) n/m
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Reply by Victoria_NJ on 12/9/11 7:13pm
Msg #406185
According to the NJ Title Rate Manual. . .
Excessive travel time is figured out at $25 per hour for a title agency. A title agency can also charge extra for the tolls.
So, instead of doing mileage, I'd go with an hourly rate of how much time you spent in transit. Esp in NJ where it can take an hour to go 10 miles during rush hour!!
You'll probably come out ahead of the game (and you can always refer them to the Rate Manual if they ask how you came up with the hourly rate figure.) LOL
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