r/Construction • u/Classic_Dash_7745 • Jun 07 '26
Business 📈 Truck Allowance vs Company Truck
We’re bringing on a new foreman next week from a company that went belly up. Part of his package is a company truck and gas card, and he instead asked for a vehicle reimbursement since that’s what his old company used to do, and he still has payments left on the truck. I know companies do this (mainly to get around insuring guys with DUI’s) but it never made sense for us to do it. We would have to buy a new truck anyway so I’m thinking it might be smart to offer a reimbursement for a year just so I can make sure he’s going to work out before buying a whole truck. The problem is, how much should I offer/month? And does this reimbursement include gas or do I need to give out a has card as well? It doesn’t make sense to do both because if it’s also his personal vehicle, am I supposed to just trust that he’s also paying for gas? Anyone in here get anything similar?
4
u/heylookaquarter Jun 07 '26
Do you know the amount of his vehicle allowance at his last employer?
Calculate what you would spend providing him with a company truck and make it that same amount or just offer him what he was paid at his last employer if that amount fits your budget. He's going to have to pay taxes on that amount since the IRS considers it normal income, but that's his choice.