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What the heck does this mean?


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In an effort to supplement our dwindling income, my wonderful, hardworking husband is taking a second job tutoring. This is what his new contract says about "travel time:"

 

For each hour you spend tutoring a client, you will be paid the sum of $6.75 per hour as travel time and you hereby agree to accept the sum of $6.75 as your travel time rate of pay. You will be paid this sum even if you do not spend any time traveling on a particular day in connection with the services which you provide. Note: Time spent commuting to your first appointment and returning home from your last appointment on a particular day is not considered travel time.

 

You will be required to complete a monthly tutoring report and submit it to employer on the 1st of each month. On that report, for each day, you will be required to report the amount of travel time and the miles you drive from appointment to appointment, both excluding your drive to your first appointment and the drive home from your last appointment. If the reimbursable mileage you drive and the hours you spend traveling each week are less then the amounts paid to you for travel time and mileage, you will not be required to reimburse employer any of these sums. In the event actual travel time and/or mileage is greater than earned per the above calculation, you will be paid the difference in your paycheck.

 

I'll be honest--I'm completely baffled and can't make sense out of these paragraphs. To me it sounds like they are paying "travel time" for time spent tutoring, but not for time actually spent traveling, and I know that can't be right. So what are they saying here?

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It sounds to me like he will bank $6.75 per hour of tutoring to be used towards his travel time, in addition to his regular rate of pay. So say he makes $20/hr of tutoring, he will earn an additional $6.75/hr for travel time. He keeps a monthly that they will use to determine how much he gets paid for his traveling. If he traveled less than he banked, he will still get paid the amount he earned (i.e. he worked 20 hours one week but only traveled 1 hr between clients, he would still be paid for the full 20 hours); if he travels more than he banked, he will get the difference.

 

I could be wrong, but that's how I read it.:D

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The other thing is, it looks like the miles to be logged for travel time are only those BETWEEN clients, not those on the way to the first one or home from the last one. So, say he has 3 tutoring appointments in an evening, and appoint #2 is 3 miles from appt #1, then it's 12 miles to appt #3, he'd have 15 mi. of travel for the day, or, if it takes 15 minutes to get between appt #1 and appt #2, then 20 minutes to get from #2 to #3, he'd have 35 minutes of travel time for the day.

 

If his actual travel time/mileage on whatever pay-to-mileage or pay-to-time chart they use exceeds what the base rate per hour of tutor time is already paid out, they'll pay him the difference, but if it's less, he still keeps the base rate.

 

They should also be paying him a wage for each hour of tutoring.

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It sounds to me like he will bank $6.75 per hour of tutoring to be used towards his travel time, in addition to his regular rate of pay. So say he makes $20/hr of tutoring, he will earn an additional $6.75/hr for travel time. He keeps a monthly that they will use to determine how much he gets paid for his traveling. If he traveled less than he banked, he will still get paid the amount he earned (i.e. he worked 20 hours one week but only traveled 1 hr between clients, he would still be paid for the full 20 hours); if he travels more than he banked, he will get the difference.

 

I could be wrong, but that's how I read it.:D

 

Well, I'd LIKE to read it that way, but it seems too good to be true. :D

 

The other thing is, it looks like the miles to be logged for travel time are only those BETWEEN clients, not those on the way to the first one or home from the last one. So, say he has 3 tutoring appointments in an evening, and appoint #2 is 3 miles from appt #1, then it's 12 miles to appt #3, he'd have 15 mi. of travel for the day, or, if it takes 15 minutes to get between appt #1 and appt #2, then 20 minutes to get from #2 to #3, he'd have 35 minutes of travel time for the day.

 

If his actual travel time/mileage on whatever pay-to-mileage or pay-to-time chart they use exceeds what the base rate per hour of tutor time is already paid out, they'll pay him the difference, but if it's less, he still keeps the base rate.

 

 

They should also be paying him a wage for each hour of tutoring.

 

So do you think it means he gets an extra $6.75/hour above his tutoring wage, and if the time he spends traveling exceeds the time he spends tutoring (unlikely) they will pay the difference?

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For each hour you spend tutoring a client, you will be paid the sum of $6.75 per hour as travel time and you hereby agree to accept the sum of $6.75 as your travel time rate of pay.

 

OK, for each hour he works a tutoring job he will be paid an additional $6.75 to be designated as "travel time pay." This must be for tax purposes, I would guess.

 

You will be paid this sum even if you do not spend any time traveling on a particular day in connection with the services which you provide.

 

So even if the second client is in the same place as the first client, he will still get the "travel time pay" added on to his regular pay.

 

Note: Time spent commuting to your first appointment and returning home from your last appointment on a particular day is not considered travel time.

 

They figure everyone in the world has to get to and from work - so they will not pay for one trip in each direction.

 

You will be required to complete a monthly tutoring report and submit it to employer on the 1st of each month.

 

Ok.

 

On that report, for each day, you will be required to report the amount of travel time and the miles you drive from appointment to appointment, both excluding your drive to your first appointment and the drive home from your last appointment.

 

He is going to have to keep very careful records. He needs to record time and milege for each trip between appointments.

 

If the reimbursable mileage you drive and the hours you spend traveling each week are less then the amounts paid to you for travel time and mileage, you will not be required to reimburse employer any of these sums.

 

Let's keep the math easy (for my sake!) If he works 10 hours in a week he will have earned $67.50 in "travel time pay." Now, if all of his clients were at the same location (maybe all kids in one family) and he had no actual travel time - he doesn't have to pay back the $67.50.

 

In the event actual travel time and/or mileage is greater than earned per the above calculation, you will be paid the difference in your paycheck.

 

If, on the other hand, each of his clients lives an hour from each other and he actually would be entitled to $100 for the week - then they will pay him that extra money.

 

 

 

 

My answers are in black above.

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Sounds like they would rather pay $6.75 per hour extra than count 50 cents per mile. That way, if he travels to an appt. 30 miles away (say this is client 2 and does not count as traveling to and from work), then they would owe him $30.00 round trip for maybe a two hour gig. They'd much rather increase his salary by $6.75 per hour to account for this travel, gas, wear and tear on the car, etc. And he must agree, in writing, that he accepts this $6.75 rather than a per mile amount.

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It means they need a new contract writter, perhaps someone who was homeschooled. :tongue_smilie:

 

It sounds to me like he will be paid his tutoring rate whatever that is plus any milage he has to travel each day between appointments but not the commute to and from the first/final appointment. So let's say he makes $20 per hour tutoring but his driving time between appointments is two hours per day well then for those two hours he will only be making $6.75 an hour. It doesn't work out in his favor if he has a lot of traveling time.

 

My brother is an OTR driver. He get paid a certain amount per mile. If he is driving he is making money but if he is sitting he is not. Since they make his schedule they pay him for sitting as well but he only gets $25 a day for sitting. It costs him that much money to eat and run his truck so if he isn't moving he isn't making any money.

 

Your hubby's job would be just like that only in reverse. If he is teaching he is making money but if he is driving, not so much. It also sounds like they pay a predetermined amount each week/month for milage and if he doesn't travel that much he gets to keep it but if he travels more he can claim the difference.

 

Or something to that effect. :confused:

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The good news here is that travel-time pay is not taxable income. This rule would not apply, however, to your time going from home to your first appointment, or from the last appointment to home.

 

If travel pay (the extra $6.75/hour) exceeds the actual travel miles (miles x the IRS reimbursement rate), the difference should be taxable, but the payroll might fudge on that one. If your husband is an independent contractor and paying and calculating his own taxes, he is the one who needs to keep track of this and be careful not to include the travel pay in his taxable income.

 

ETA: I don't know why there's a thumb's down on the subject line. Sorry about that!

 

Terri

Edited by plansrme
explain random thumb's down sign
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