Approved by Finance Nov 15, 2004 KCC volunteers who use a vehicle in the course of their volunteer work may either:
1. Request mileage reimbursement at current non-profit rate;
2. Request mileage reimbursement at the current business rate, claiming as income any amount in excess of the current non-profit rate; or
3. Claim the non-profit rate as a tax deduction without requesting reimbursement from KC
If someone needs reimbursement in order to provide volunteer services, KCC should pay the full business rate. If a volunteer does not need reimbursement, we are not encouraging them to ask for it. The reimbursement rate is meant to cover the actual cost of using the vehicle, including it's depreciation, insurance and maintenance.
There are 3 ways in which KCC pays for mileage costs:
1) Employees – we can reimburse at the IRS business rate when date and purpose of mileage is accounted for. There is no tax impact to the employee.
2) Volunteers – reimbursement can be requested at volunteer rate or the business rate. If it is paid at the business rate, payments in excess of the volunteer rate will be reported on a Form 1099.
3) Independent contractor –mileage paid at the business rate can be authorized in the same manner as other payments to the Independent Contractor. These payments will be reported on a Form 1099.