PPMR 10-03, Automobile Allowances
Number: 10-03
Subject: Automobile
Allowances
Village of North Palm Beach
Date: December 20, 2010
Revised:
POLICY AND PROCEDURES MANUAL REVISION
10.7.0 AUTOMOBILE ALLOWANCES
10.7.1 Purpose:
The Village utilizes monthly automobile allowances for the purpose of minimizing
the liability and cost associated with employee use of Village-owned vehicles and as a
competitive form of compensation for which no retirement contribution is made. It is not
intended as a dollar for dollar reimbursement of actual mileage.
10.7.2 Objective:
This policy shall provide procedures governing all automobile allowances paid to
full-time Village employees either through contractual obligation or as part of their
compensation package as determined by the Village Manager and approved through the Village
Council’s adoption of the annual budget.
10.7.3. Policies:
A. Employees receiving a monthly automobile allowance shall not be eligible for
reimbursement for automobile mileage, except for travel in the performance of official
duties to locations outside of Palm Beach County.
B. Reimbursement for out-of-county travel shall be credited in accordance with Section
112.061, Florida Statutes, and all applicable Village polices and procedures.
C. For all normal or daily travel in the course of their official duties, employees receiving an
automobile allowance shall use their personal vehicle and not a Village-owned vehicle.
D. The amount of the automobile allowance shall be as established by contract or by the
Village Manager and shall not exceed $500.00 per month.
10.7.4. Procedures:
A. Prior to receiving the automobile allowance or within ten (10) days of the adoption of
this policy, the employee shall submit to the Finance Department a completed
Automobile Allowance worksheet. As required by Section 112.061(7)(f), Florida
Statutes, the worksheet must show the places and distances for an average typical
month’s travel on official business, and the amount that would have been allowed under
the approved rate per mile for the travel shown in the worksheet. A new worksheet must
be submitted annually at the end of each fiscal year.
B. The amount paid for the automobile allowance shall not be considered part of the
employee’s base pay and is not included in the calculations for pay adjustments. The
withholding of federal income tax and FICA tax will be deducted in accordance with all
applicable IRS regulations. The amount of the automobile allowance will be included in
the FICA wages dollar amount and therefore will be used in the determination of the
maximum wages subject to FICA tax.
APPROVED
Jimmy Knight
Village Manager