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Your email address will not be published.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

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.
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!
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 ...

>> 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!