Travel expenses (IT) what do you get?

[mdooher]

I refuse to use my own vehicle point blank.... the reason I give is that it is not covered by my insurance.

Problems for the company are the H&S in the workplace act. Means they are resposible for your saftey when you are driving for them so they need to ensure you have a safe car etc... How can they do that if you drive your own Reliant Robin

Oh yeah, your boss needs to realise he is in fact a spanker...I bet he gets reimbursed for ALL his travel.

[Drunken Monkey]

Hmmm,

IT Covers such a broad range of specific occupations, each have generally accepted diffferent modes of operation.

Situation 1: By IT you mean "Network Engineer" or similar. Network engineers are typically expected do do a fair amount of hands on work, you can't plug in cards ands cables via a modem (not yet, anyway), so going to customers is an expected part of the job. Some companies provide a work car, other comapnies expect the engineer to provide their own car and will reimburse expenses using the IRD's km scale. It is certainly not unusual for small and medium network service providers to expect their engineers to supply their own car, but I've never heard of a place that doesn't have some sort of reimbursement scheme (until now)

Situation 2: (my sit) I provide network services as a contractor. I have to supply all my own tools, vehicle included. I don't charge vehicle expenses specifically, but as I charge time, my time begins from when I leave base NOT when I arrive at customer's site. Customers outside of greater Auckland will have travel time charges fixed at a rate negotiated by the engineer and the customer. We typically aim for somewhere around cost, so a 50% discount on time (i.e. the engineers still gets paid but the company makes no profit on the time). Where flights are required, the flight cost is on charged and discounted travel applies (travel to/from airport and flight time).

Situation 3: By IT you mean someone in software services. Usually these people aren't expected to go on site much, if at all. The times that they do, a work vehicle is normally provided if there is one available. If not, travel expenses are reimbursed using the IRD scale.

Situation 4: Network Admin types (as opposed to engineers) - typically work as a salary worker for one company only, doing internal IT support. Travel is not normally expected as all work can be carried out on site. Some companies have branches and travel is expected. The company will typically pay all expenses, i.e. taxi to airport and airfares. Again, normal practice is a km reimbursement using the IRD scale OR the engineer will drive the work car.

Those are the only 'flavours' of IT I can comment on from direct experience. There are a range of consultancy services which also sometimes fall under IT, although they may be more accurately compared to professional services. Not sure what their methods are, but are probably most likely to be the same as sit 3.

[Albino]

Mileage is a tax deductable expense up to 5,000 kilometers per year.

It all depends what's in your contract, but I'd expect a significant amount of extra $$ per annum if I was expected to pay my own mileage.

If I was you I'd find another job now while the market is still short of skilled labour.

[ManDownUnder]

LOL... nope... they're pulling a fast one on you. The expenses incurred are company expenses and you need to be reimbursed at either an agreed or the public service rate per km.

End of story.

Turn the scenario on it's head... what if your car breaks down. That means the company no longer has access to the use of your vehicle... so you're... in breach of contract? Unable to perform your duties?

errr... no. It means the company needs to find you an alternate means of getting on site... kinda confirming the fact they need to provide you means anyway. You happen to supply the means... and THEY NEED TO PAY FOR IT.

[Drunken Monkey]

Mileage is a tax deductable expense up to 5,000 kilometers per year.

That statement by itself isn't entirely correct. The whole schedule is here:
http://www.ird.govt.nz/payroll-emplo...s-mileage.html

[Pumba]

Im not in IT but an Civil Engineer (site visits, meeting etc, etc) any way when I was placed put on loan by my work to a council I had the right to charge them for the milage over what I would normally use to get to the office.

Ok say the office is 10km from home, the council ofices are 30km from home, I had the right to claim for 20km milage.

I think think that made sense.

[The Pastor]

DUDE YOU GOT PWND, GET ANOTHER JOB, OR GET IT SORTED OUT PRONTO.

i WANNA HEAR FROM THE 4 PPL WHO PAY? WHATS YOUR DEALS?

[ManDownUnder]

DUDE YOU GOT PWND, GET ANOTHER JOB, OR GET IT SORTED OUT PRONTO.

i WANNA HEAR FROM THE 4 PPL WHO PAY? WHATS YOUR DEALS?

From Drunken Monkeys link to the IRD site

Standard rates for motor vehicles

Annual work-related km	Rate
Banded rate
1 to 3,000 km	62 cents per km
3,001 km and over	19 cents for each km over 3,000
Flat rate
Any distance	28 cents per km

Standard rates for motor cycles

Annual work-related km	Rate
Banded rate
1 to 3,000 km	31 cents per km
3,001 km and over	10 cents for each km over 3,000
Flat rate
Any distance	14.5 cents per km

Note
For more information, including examples of the rates mentioned and the flat rate formula go to Forms and guides > Motor vehicle reimbursing rates >

Individual special rate for all vehicles

This method allows fixed costs such as depreciation, interest, insurance and registration to be better apportioned to work-related travel. The rate is based on the cc rating of the vehicle. The fixed and running costs are:

cc rating	annual fixed costs	running costs (cents per km)
up to 1,300cc	$4,214	16.7c
1,301-1,600cc	$4,507	17.2c
1,601 -2,000cc	$5,475	19.1c
over 2,000cc	$6,308	22.2c

Which rate suits you?

You will need to work out which rate is best for you.

Rate	Advantages	Suits....
Banded	Takes into account the fixed costs of owning a car for the first 3,000 kms, and only running costs beyond that.	people who do a smaller amount of business travel.
Flat	Has a proportion of the fixed costs allocated to every km.	people who do a larger amount of business travel. For more than 14,333 kms of business-related travel in a year, this rate provides a greater reimbursement than the banded rate.
Individual special	You only use the flat rate for work-related travel. There is no absolute cut-off distance at which the individual special rate produces a higher rate than the standard rate, because it depends on the total distance travelled and the work distance travelled. As a general guide, a low total mileage for the year (business and private), combined with a high proportion of business mileage is likely to favour the individual special rate.	people who use a vehicle almost exclusively for work purposes.

Actual expenditure option

If you believe your vehicle expenditure is higher than the rates given, you can use the actual expenditure option.
You can reimburse an employee's actual expenditure instead of using the mileage rates. For this method both the employer and employee must keep accurate records, including details of private and work-related expenditure, to justify the reimbursements.

[xgnr]

Thanks guys

Just want to mention that we are an IT Services Company (Consultants, Managed Services etc). Our people travel to site from work (consultants- frequently), (Services- infrequently) but same dumb is dumb rule applies. i.e. no travel in the 09 zone is payable...

I have been advised today that "equivalent" company's i.e. SAP/Oracle have the same policy anyone who has worked as a consultant with these guys comment please?

I am paid a good salary and "wear" it as a professional.(Although the running around 300K a week is costing me shitloads and I'm getting tired of it) Best thing about it is that I can do most of it on the bike.

Just waiting for someone up top to bitch about it... customers love it as its a great way for those that you don't talk to often to remember you (mad bastard on the bike in this weather)

Still trot out the suit and cage when building a new customer relationship

Cheers all

[What?]

...I had the right to charge them for the milage over what I would normally use to get to the office.

Ok say the office is 10km from home, the council ofices are 30km from home, I had the right to claim for 20km milage.

Same here - 70 cents/km (govt. 2000cc rate) for any distance travelled in excess of normal home to work distance.

[James Deuce]

IT Travel expenses? I have a Taxi card. I get snarled at if I use it.

[sanchez]

I am provided with a car and fuel card here in welly, anything down south I am rented a car on a company card. I end up paying for everything else but gas (food, accomodation, taxis) out of pocket and getting reimbursed, which kinda sucks, but it's a lot better than what you're getting.