volunteer transportation

[Michele Manley]

I'm looking for a model by which I can create a volunteer program where I reimburse volunteers at a higher rate than the government standard. I want to use NF funds to reimburse half the per mileage rate and the recipients money to reimburse the other half of the per mile rate. Any suggestions?

[Carrie Porter]

Michelle, you may consider asking this question to the newest listserv in WI at mobility...@wi-mm.org since this Google Group is rarely used anymore.

 

Anytime you reimburse volunteers at a rate higher than the charitable driving rate, which is currently $.14/mile, you will need to take into account that your agency must issue 1099s and volunteers will be subject to taxes on those reimbursements above the $.14/mile.  Unlike the IRS business, medical and moving rates that fluctuate with the cost of driving, the charitable rate is set by statute and will take an act of Congress to change it. As you can imagine, this often makes it difficult to recruit volunteer drivers.  Rep. Petri from WI introduced a bill, Tax Relief Act 1212 that will increase the charitable driving rate.  There are currently no co-signers for the bill.  If you can contact your legislator to support the bill that will help.  Where are you located?

 

 

Carrie Porter

OAA Consultant

Transportation Specialist

Greater WI Agency on Aging Resources

608-228-8092

 

See www.GWAAR.org for the latest information and resources.

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[Cashin, Norah]

What rate do you want to use?  We use the IRS business rate which is about $0.56/mi these days.  We don't cover much more than a third of that in fares/donations.

Norah

Sent from my Verizon Wireless 4G LTE smartphone

[Cashin, Norah]

What Carrie says is true.  There is no discrepancy, just a different philosophy.  We give information on tax implications to all vols and let them choose whether to be reimbursed at a lower rate, or even donate their miles.  A surprising number of them do.

Sent from my Verizon Wireless 4G LTE smartphone

Carrie Porter wrote:

Michelle, you may consider asking this question to the newest listserv in WI at mobility...@wi-mm.org since this Google Group is rarely used anymore.

 

Anytime you reimburse volunteers at a rate higher than the charitable driving rate, which is currently $.14/mile, you will need to take into account that your agency must issue 1099s and volunteers will be subject to taxes on those reimbursements above the $.14/mile.  Unlike the IRS business, medical and moving rates that fluctuate with the cost of driving, the charitable rate is set by statute and will take an act of Congress to change it. As you can imagine, this often makes it difficult to recruit volunteer drivers.  Rep. Petri from WI introduced a bill, Tax Relief Act 1212 that will increase the charitable driving rate.  There are currently no co-signers for the bill.  If you can contact your legislator to support the bill that will help.  Where are you located?

 

 

Carrie Porter

OAA Consultant

Transportation Specialist

Greater WI Agency on Aging Resources

608-228-8092

 

See www.GWAAR.org for the latest information and resources.

 

 

 

From: mobility-man...@googlegroups.com [mailto:mobility-man...@googlegroups.com] On Behalf Of Michele Manley
Sent: Wednesday, October 30, 2013 11:07 AM
To: mobility-man...@googlegroups.com
Subject: volunteer transportation

 

I'm looking for a model by which I can create a volunteer program where I reimburse volunteers at a higher rate than the government standard. I want to use NF funds to reimburse half the per mileage rate and the recipients money to reimburse the other half of the per mile rate. Any suggestions?

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[Cashin, Norah]

There is a minimum threshold for having to claim; I will send that when I get back to my office.

[Michele Manley]

thanks for the input!

On Wednesday, October 30, 2013 12:15:50 PM UTC-4, Carrie Porter wrote:

Michelle, you may consider asking this question to the newest listserv in WI at mobility...@wi-mm.org since this Google Group is rarely used anymore.

 

Anytime you reimburse volunteers at a rate higher than the charitable driving rate, which is currently $.14/mile, you will need to take into account that your agency must issue 1099s and volunteers will be subject to taxes on those reimbursements above the $.14/mile.  Unlike the IRS business, medical and moving rates that fluctuate with the cost of driving, the charitable rate is set by statute and will take an act of Congress to change it. As you can imagine, this often makes it difficult to recruit volunteer drivers.  Rep. Petri from WI introduced a bill, Tax Relief Act 1212 that will increase the charitable driving rate.  There are currently no co-signers for the bill.  If you can contact your legislator to support the bill that will help.  Where are you located?

 

 

Carrie Porter

OAA Consultant

Transportation Specialist

Greater WI Agency on Aging Resources

608-228-8092

 

See www.GWAAR.org for the latest information and resources.

 

 

 

From: mobility-man...@googlegroups.com [mailto:mobility-management-fo...@googlegroups.com] On Behalf Of Michele Manley
Sent: Wednesday, October 30, 2013 11:07 AM
To: mobility-man...@googlegroups.com
Subject: volunteer transportation

 

I'm looking for a model by which I can create a volunteer program where I reimburse volunteers at a higher rate than the government standard. I want to use NF funds to reimburse half the per mileage rate and the recipients money to reimburse the other half of the per mile rate. Any suggestions?

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[Michele Manley]

Norah, I was toying with $1/mi of which the person receiving the ride would pay 50 cents and the match would come from NF. I think in the end, the "volunteer" would end up making a tiny bit of money...

the hard part is we are so geographically spread out...you have to drive 20 miles often just to get groceries.

On Wednesday, October 30, 2013 12:16:28 PM UTC-4, Cashin, Norah wrote:

What rate do you want to use?  We use the IRS business rate which is about $0.56/mi these days.  We don't cover much more than a third of that in fares/donations.

Norah

Sent from my Verizon Wireless 4G LTE smartphone

Michele Manley wrote:

I'm looking for a model by which I can create a volunteer program where I reimburse volunteers at a higher rate than the government standard. I want to use NF funds to reimburse half the per mileage rate and the recipients money to reimburse the other half of the per mile rate. Any suggestions?

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[Cashin, Norah]

Over the Business rate (> $0.565/mi):  Michelle, I think you should talk to your volunteers, and maybe a tax attorney, about the tax implications of paying $1.00/mi.  Anything over the IRS business rate is actual income, would have to be reported on a W2, and could have more significant ramifications for income-indexed retirement benefits and Social Security.   This is discussed in Section 13, subsection Employer Reimbursement in Excess of Federal Mileage Rate, here: http://www.irs.gov/pub/irs-tege/fringe_benefit_fslg_2013.pdf, but save yourself the ennui; here is the relevant paragraph: 

 

Reimbursement in excess of the Federal mileage rate are taxable as regular wages to the employee.  When there is an excess reimbursement, both the nontaxable and taxable amounts are reported on Form W2…

 

 

 

Business or Charitable rate ($0.565 vs $0.14/mi):  Several of you asked for the justification for our volunteers being able to receive the IRS business rate without tax implications.  Here’s the  skinny:

 

You can pay up to the business rate (currently 56.5 cents per mile).  The reimbursement is reported, but the tax liability varies for each person and is not great.  Or you can pay the 14 cents per mile charitable rate, which will put no-one in tax jeopardy.  This applies to drivers in our volunteer programs except RSVP.   

 

If a person drives for one of the organizations (including RSVP) which are part of the Corporation for National Service (these are listed in the attached PDF, Publication 554, Tax Guide for Seniors - the relevant paragraph is starred), the reimbursement, up to the IRS business rate, is tax-exempt; i.e., they do  NOT  have to report the reimbursement, and do not pay taxes on it. 

 

I hope this is clearer. 

 

P Please consider the environment before printing this e-mail
Norah Cashin
Transportation Manager
Dane County Department of Human Services
1202 Northport Dr
Madison WI  53704
cas...@countyofdane.com

From: mobility-man...@googlegroups.com [mailto:mobility-man...@googlegroups.com] On Behalf Of Michele Manley
Sent: Thursday, October 31, 2013 9:43 AM
To: mobility-man...@googlegroups.com
Subject: Re: volunteer transportation

 

Norah, I was toying with $1/mi of which the person receiving the ride would pay 50 cents and the match would come from NF. I think in the end, the "volunteer" would end up making a tiny bit of money...

the hard part is we are so geographically spread out...you have to drive 20 miles often just to get groceries.

On Wednesday, October 30, 2013 12:16:28 PM UTC-4, Cashin, Norah wrote:

What rate do you want to use?  We use the IRS business rate which is about $0.56/mi these days.  We don't cover much more than a third of that in fares/donations.

Norah

Sent from my Verizon Wireless 4G LTE smartphone

Michele Manley wrote:

I'm looking for a model by which I can create a volunteer program where I reimburse volunteers at a higher rate than the government standard. I want to use NF funds to reimburse half the per mileage rate and the recipients money to reimburse the other half of the per mile rate. Any suggestions?

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[Michele Manley]

what if they sign a sub-contractor agreement, as opposed to a volunteer? That way they could earn a little bit...either way, a contract would be in place and it would clearly state that they would have to contact their tax adviser. 

[Vanessa P. Brooks]

Please remove me from the email distribution list.

VB