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To: Pastors, Parish Administrators, School Principals and Business Managers
CC: Parish, Mission and School Secretaries
From: Michael Warren, Controller; Patrick Warner, Parish Accounting Manager; Office of Finance
Standard Mileage Rates
Effective January 1, 2018, the standard mileage rate in the archdiocese for business mileage will be 54.5¢ per mile. Please use this rate to reimburse employees who drive their personal vehicles for church/school related business. This rate is also used to compensate archdiocesan priests who have chosen the actual mileage method for their automobile reimbursement.
Each priest is responsible for providing his own automobile. Priests may elect one of two methods to recover a portion of the cost of a single automobile:
1. 80/20 Option: 80% of all normal operating expenses including insurance, gas, oil, repairs, etc. are paid.
The best way of handling these – the priest should pay the expense, and then submit the receipts to the business office. The business office will reimburse the priest for 80% of the expense (meaning the priest absorbs 20% of the expense). The priest would have the 80% reimbursement included on his 1099 for the year.
2. Per Mile Option: an amount per mile, as published annually by the IRS, for mileage driven on church business. This reimbursement is processed via expense reports that include appropriate documentation.
Order priests are provided automobiles by their Order. The Order is reimbursed though a fixed automobile allowance paid directly to the Order.
Parish, School or Catholic Center
The entity to which the priest is assigned is responsible for the automobile allowance (whether that is paid under the “per mile” option, or the 80/20 option.
Automobile Operating Expenses
For those who elect the 80/20 option for automobile reimbursement, these expenses do not include extraordinary replacements such as a new engine or transmission. Reimbursement does not take place for personal trips or accident repair cost in excess of that covered by insurance.
Fleet Automobile Policy
Priests are encouraged to purchase automobile insurance through the archdiocesan fleet policy. If a priest declines the fleet policy and instead procures insurance coverage independently, then the outside coverage must include a $1,000,000 combined single limit of liability with the archdiocese named as an additional insured party. A copy of the outside policy and certification must be presented by the priest to the Office of Finance.