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Paying for Mileage
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Paying for Mileage
Discuss workforce management, performance management, retention, communication, motivation, contributing to business results and other topics.
Our company currently pays mileage at the rate the IRS uses (58.5 cents) per mile.
Per IRS regulations for transportation and using your own car for business mileage “If you commute to a tem
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Forums » Topic Forums » General Forum » Paying for Mileage
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Paying for Mileage
posted at 11/20/2008 10:37 AM EST
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Posts: 13
First: 8/10/2007 Last: 7/16/2010 |
Our company currently pays mileage at the rate the IRS uses (58.5 cents) per mile.
Per IRS regulations for transportation and using your own car for business mileage “If you commute to a temporary work location you can deduct the expenses of the daily round-trip transportation between your home and the temporary location regardless of the distance”. Our company as an example if you normally work in Florence, KY and instead of going to your normal work location you start your day out in Cincinnati, OH we would then pay mileage from your house to Cincinnati and then from Cincinnati back to your house. My question is if you normally drive 10 miles to get to work are we allowed to deduct the 10 miles from the mileage from your house to Cinit. and then back again and tell the employee that if they want to be reimbursed for those 10 miles they would need to claim it on their taxes at year end. Thank you for your help. |
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Paying for Mileage
posted at 11/21/2008 4:12 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
The only state that requires any kind of reimbursement at all is California. In the other states, you as an employer could not reimburse at all and still be legal.
So yes, you could make that your policy and yes, it is possible that the employee could writeoff the difference at income tax time. The IRS is just telling you what the employer/employee can writeoff tax wise, not what is required to pay. {However, if I remember my personal income taxes correctly, this might be one of those deductions that has to be more than a certain % of wages to be claimable.} |
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Paying for Mileage
posted at 11/21/2008 6:38 AM EST
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Posts: 1103
First: 3/16/2007 Last: 8/19/2011 |
Rrupert is correct on all counts. Only CA requires reimbursement for travel and strangely (or not it is after all CA) the courts there have generally enforced it as "more" than just mileage.
That does not appear to be your problem however. To my knowledge what ever you choose to do is acceptable. As you are quite aware, any change perceived as a take-a-way will be a communications and possible morale challenge. |
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