Mileage reimbursement

jkaosm

Where do I find the rules regarding mileage reimbursement? I need to find something to support how we pay our employees regarding their mileage and when it applies.

If you have employees that on somedays driver to another office to start work that day, does their mileage still kick in once they get to the other location, or do they get paid the difference between the 2 offices?

NaeNae55

Try searching the IRS.gov website for information. However, your decision to reimburse at the standard rate or something above or below is entirely up to you. There is no legal requirement. If you reimburse for more, then you need to report the difference as income on the employee's W2. If you reimburse for less, then the employee can claim the difference as deductions on their income taxes. Most companies reimburse at the IRS standard rate to avoid complications.

The IRS does not consider travel to and from work as reimbursable. So if you have an employee report for work at one site one day, and then another site 10 miles further away the next day, there is no IRS deduction. However, if you have an employee report to work at one site, and then travel to a 2nd site, that mileage is deductible (reimbursable). If the employee returns to the original site (or goes to a 3rd site), that mileage is reimbursable. The mileage to go home, from whatever site the employee is last at for the day, is not reimbursable.

Hope this helps.

Nae

jkaosm

Thanks. Thats what I was thinking as well, but wanted to get another opinion.