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mileage reimbursement
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mileage reimbursement
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An employee who works to set up locations in different areas recently moved from NC to CA. He drove his own vehicle with items that he had in the NC location that he wished to have in CA. We paid him
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mileage reimbursement

posted at 10/7/2009 9:20 AM EDT
Posts: 94
First: 2/7/2008
Last: 3/21/2011
An employee who works to set up locations in different areas recently moved from NC to CA. He drove his own vehicle with items that he had in the NC location that he wished to have in CA. We paid him the cost of the gas and wages for the time spent driving. Do we also need to reimburse him for mileage (such as the IRS 55 cents/mile or does the fact that we paid his actually expenses count?

mileage reimbursement

posted at 10/7/2009 9:24 AM EDT
Posts: 11
First: 9/10/2009
Last: 11/23/2009
In my past experience it has either been one or the other. What was the agreement or understanding? What is the person's expectations? It seems like the individual has been compensated for the move. But then, it also sounds like you may have agreed to both forms of comp. Need clarity on agreement.

mileage reimbursement

posted at 10/7/2009 10:22 AM EDT
Posts: 94
First: 2/7/2008
Last: 3/21/2011
Right or wrong, there was only a verbal agreement that we would pay for his gas, lodging, meals, trailer and wages. He has made several of these moves already and now that he has resigned, he is asking about the mileage.

We will develop a policy from now on so this doesn't happen again.

mileage reimbursement

posted at 10/8/2009 4:40 AM EDT
Posts: 2146
First: 2/15/2006
Last: 9/14/2011
Was he actually working in CA at the time? I know CA is one of the few states that require expense reimbursement, but honestly it sounds like you reimbursed him for actual costs to get there. I wouldn't reimburse any more personally. Especially if it was his choice to drive his car vs having it shipped, etc.

mileage reimbursement

posted at 10/8/2009 3:18 PM EDT
Posts: 94
First: 2/7/2008
Last: 3/21/2011
Our headquarters is located in CA but he drove from NV to NC then NC to CA. It wasn't until he got to CA that he was considered a CA employee with CA taxes and OT applied.

Thank you for your comments.

mileage reimbursement

posted at 10/9/2009 9:11 AM EDT
Posts: 464
First: 6/30/2004
Last: 11/22/2010
The thing about the Fed mileage rate is that it is supposed to also allow for such things as insurance, license tags, maintenance, depreciation and the like.

The actual expenses you mentioned did not include any of these behind the scenes costs associated with owning and operating a personal vehicle.

If you were thinking about being completely accurate, perhaps a deduction from the $0.55 per mile calculation that would account for all the gas, and other car related expenses would tell you what kind of cost that approach would be.

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