We have an employee that uses his own personal truck for jobsites. We need to start paying him rent on his personal truck, since he allows us to haul equipment and tools in his personal truck. What account would I put this under. I realize its an expense to us. But want to make sure we are doing this correctly since he is a paid employee.
It's part of taxable Payroll for him. You are throwing more money at him in exchange for business use of personal car, and not making this Accountable = not paying mileage rates, but some fixed allowance.
Everyone also needs to check that their insurance covers this. You are both at risk.
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