The mileage reimbursement rate typically used to reimburse a nanny for using her personal vehicle to transport her charges to and from school, appointments, activities, etc. has increased one cent in 2011 to $0.51 per mile.
Nanny employers generally use the IRS’ business mileage reimbursement rate as a benchmark in nanny employment contracts to calculate the reimbursement to their nanny for the business use of the nanny’s personal vehicle. The mileage reimbursement rate is intended to cover both direct costs (gasoline for example) and the anticipated wear and tear, depreciation, and insurance costs.
Families are advised to make sure the nanny has a business use rider on her automobile insurance policy.
Nannies, do you use your personal vehicle for business purposes? Was it a job requirement? How are you reimbursed for that business use?