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Mileage Allowance: What you need to know

According to BLR's Survey of Employee Benefits,60 percent of employers that have established a mileage allowance for work-related automotive travel paid within 2 cents of the full Internal Revenue Service (IRS)-approved allowance. Sixty-four percent reported that they had increased their mileage allowance, which is not surprising given that the federal tax guideline for mileage had also increased. In fact, 48 percent reported that they paid at least the IRS-approved allowance. It remains to be seen how employers will react to the recent up, then down, and then up of the IRS rates.
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Most organizations that reimburse for mileage also reimburse employees for parking and toll charges. Receipts or specific information are usually required before the employee is paid.
Mileage reimbursement. The standard mileage reimbursement rate, effective January 1, 2016, is 54 cents per mile for all business miles driven. The standard mileage reimbursement rate is 19 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 ...

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Mileage/Commuting Reimbursements Webinar Recording
BLR Webinar: "Mileage/Commuting Reimbursements: How to Avoid Big Mistakes With These Employee Expenses""
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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.
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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


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