Do pizza delivery drivers get paid for mileage? Many delivery workers might worry about their finances when using a personal vehicle for deliveries. Luckily, drivers report that they can get tax exemptions for the wear and tear put on their personal vehicles and share tips about how to best save money while maximizing profits.
Under the federal law of the United States of America, The Internal Revenue Service (IRS) dictates that pizza delivery drivers be paid 55 cents per mile driven (assuming they are paid at most the federal minimum wage).
One of the major determining factors in this matter is whether or not the worker is considered an employee or a contractor of any given company. Legally speaking, an individual is considered an independent contractor or employee based on three major questions.
- How much day-to-day control does a given company have over an individual’s work process/conduct?
- How much control does a given company have over a worker’s finances?
- Can an employee reasonably believe that they are an employee of a given company?
This is important because many drivers who work for courier services such as UberEats or Instacart are considered independent contractors. This makes deducting miles driven as well as vehicle maintenance very straightforward when filing for tax deductions.
Pizza deliver personnel who are considered company employees should consult with their human resources department to determine what is and is not considered a business expense when filing taxes.
People also ask:
What if I am considered a company employee?
While individuals who work as contractors will be able to more easily list their expenses, workers who receive a W2 form in the United States can still deduct expenses on their tax return. Individuals may be able to file for a partial mileage reimbursement even if their itemized expenses fall below 53.5 cents per mile.
How can I best keep track of my mileage?
Drivers who use their personal vehicle to deliver food will have to take meticulous care to track their business vs personal use of their car. Luckily there are many smartphone applications to help track these exact expenses.
Individuals should always take note of:
- Vehicle mileage when work has started.
- How many miles have been covered with each work trip.
- The date and day time each delivery started and ended.
- Locations driven from and to.
- The reason that each trip was made.
Keeping a close eye on all of these details can save a great deal of time and frustration when filing for a tax reimbursement for miles driven. One should always check with their delivery service to determine whether or not an individual is considered an employee or contractor, as this can have a major impact on one’s tax status.
Who Determines how much drivers get paid per hour?
The question of how much drivers get paid depends upon market conditions and the company a driver is working for. That being said, the major pizza delivery companies tend to set the market rate in a given locale. The national average wage for delivery drivers within the United States is $16.40 per hour, but this can significantly vary from state to state.
Dominos is one of the largest pizza delivery chains in the United States, and most pizza chains tend to follow their rules regarding mileage reimbursement for drivers. Drivers report being reimbursed anywhere from 26 to 55 cents per mile driven depending on market conditions. Most pizza delivery companies will follow these guidelines as major companies such as Dominos are the market trendsetters.
How Far do couriers drive per day?
Most major pizza chains restrict their delivery range to 6 miles from the store, but this is subject to marker logistics. While this might seem like a short drive, drivers report frequent trips, and some drivers claim that they drive roughly 100 miles over the course of an entire shift.
This makes it even more important to track maintenance expenses when working with a personal vehicle. Some delivery chains will offer benefits such as discounts on car repair and gasoline, but this will depend on the company.
While some drivers might find themselves in a unique situation, most major pizza chains reimburse individuals for miles driven. The rest of the delivery market generally follows the trends set by the largest companies.
Companies today often offer discounts and rebates on fuel and insurance, but there are still benefits that pizza delivery drivers can take advantage of.
While the answer to the question “do pizza delivery drivers get paid mileage?” is yes, it is still important for drivers working with a personal vehicle to track fuel and maintenance expenses, as it can have a large impact on one’s tax returns in the United States. You might even be able to deduct equipment costs, like a pizza delivery bag, if you need to purchase your own.
Whatever company you decide to deliver for: drive efficiently, drive safely, and make the best use of the benefits your pizza delivery company can offer!