|
|
Claim your Copy of
Top 100 FLSA
Overtime Q&As
Your email address will not be published. Required fields are marked *

Mileage Allowance: What you need to know

Mileage reimbursement. The standard mileage reimbursement rate, effective January 1, 2017, is 53.5 cents per mile for all business miles driven. The standard mileage reimbursement rate is 17 cents per mile for medical or moving purposes and 14 cents per mile for service of charitable organizations. Employers that use the IRS rate or a lower rate may deduct the reimbursement as a business expense, and the payment need not be included in the employee's income. If the approved rate (or a lower rate) is used, the IRS considers that requirements to substantiate and adequately account for the expense are satisfied without extensive documentation of actual expenses. The employer may deduct reimbursements at a higher rate, but only if the reimbursements reflect the actual cost of the travel and only if the employer keeps adequate records to substantiate its outlays. Reimbursements for tolls, parking, etc., may be deducted in addition to the mileage allowance.
The business mileage rate decreased half a cent per mile, and the medical and moving expense rates each dropped 2 cents per mile from 2016. The charitable rate is set by statute and remains unchanged. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs. Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!
Company cars. The IRS also requires employees to report as earned income the value of their personal use of company automobiles. The government publishes an Annual Lease Value Table for the calculation of this sum, which can be ...

>> Read more about Mileage Allowance

More on this topic:

Mileage Allowance Resources

There are currently no resources for this topic/state.

Mileage Allowance Products

Mileage/Commuting Reimbursements Webinar Recording
BLR Webinar: "Mileage/Commuting Reimbursements: How to Avoid Big Mistakes With These Employee Expenses""
Free Special Reports
Get Your FREE Special Report. Download Any One Of These FREE Special Reports, Instantly!
Featured Special Report
Claim Your Free Copy of Top 100 FLSA Overtime Q&As

We’ve compiled a list of the 100 most commonly asked questions we have received on the federal Fair Labor Standards Act (FLSA) overtime regulations.
Download Now!


This report, "Top 100 FLSA Q&As", is designed to provide you with an examination of the federal FLSA overtime regulations in Q&A format, including valuable tips for bringing your workplace into compliance in an affordable manner.

At the end of the report, you will find a list of state resources on wage and hour issues. This report includes practical advice on topics such as:
  • FLSA Coverage: How FLSA regulations apply to all employers and any specific exemptions from the overtime requirements
  • Salary Level: Qualifying for exemptions and nonexempt employees
  • Deductions from Pay: Deducting for violations, disciplinary reasons, sick leave, or personal leave


Download Now!