Our cafe delivers orders using its own car. How can we organize the accounting of working hours or car mileage for our full-time driver?

Short Answer: Use time-tracking software for hours and mileage logs or GPS systems for mileage tracking.

Full Answer: To accurately track working hours and car mileage for your full-time delivery driver, follow these steps:

1. Tracking Working Hours:
a. Use Time-Tracking Software:

Implement time-tracking software (e.g., Toggl, TSheets, or Hubstaff) to monitor:
Start and end times of each shift.
Breaks and idle time.
Overtime hours if applicable (over 40 hours per week must be paid at 1.5 times the regular rate under the FLSA).

b. Manual Time Logs:

If the software is not feasible, use manual timesheets where the driver logs:
Clock-in and clock-out times.
Duration of breaks and delivery times.
Have the driver sign and submit timesheets weekly for payroll accuracy.

c. Compliance with FLSA:

Ensure compliance with the Fair Labor Standards Act (FLSA) for overtime and minimum wage requirements.
Retain time records for at least 2 years as per federal law.

2. Tracking Car Mileage:
a. GPS-Based Mileage Tracking:

Install a GPS tracking system (e.g., Samsara, Fleet Complete, or Verizon Connect) to:
Automatically track mileage for each delivery.
Generate detailed reports showing trip start, end, and total miles.
Monitor fuel usage and efficiency to manage costs.

b. Manual Mileage Logs:

Use a mileage logbook if GPS is not available:
Record odometer readings at the start and end of each trip.
Note the date, purpose, and destination for each trip.
Require the driver to sign and submit logs weekly or monthly.

c. IRS Mileage Reimbursement:

If reimbursing mileage, follow the IRS standard mileage rate (for 2024, it is 65.5 cents per mile).
Reimbursed mileage is non-taxable if documented correctly.
If mileage is not reimbursed, ensure the business covers fuel and maintenance costs.

3. Combining Hours and Mileage Tracking:

Use integrated platforms like QuickBooks Time or Fleetio that track hours worked and mileage.
Provide the driver with a mobile app for real-time tracking and reporting.

4. Additional Compliance Considerations:

Ensure the driver has a valid driver’s license and insurance coverage if required by state law.
Verify compliance with Department of Transportation (DOT) regulations if your cafe’s deliveries involve interstate travel or heavy vehicles.

General Federal Standard: The FLSA requires accurate tracking of working hours for payroll, and the IRS mandates documented mileage for tax deductions if reimbursed.