Company Mileage Reimbursement – Explained

SARASOTA, Fla. - April 12, 2021 - PRLog -- Small Business Owners and Entrepreneurs alike often find themselves in the situation of having too much on their plate. It is usually a good thing, as it means their business is gradually expanding, but there comes a time when they have to start outsourcing tasks, that are, of course, necessary, but they are more of everyday chores than game-changer moves.

Duties that often needed to be outsourced are usually the ones that take too much productive time but are mostly related to the everyday maintenance of a business.

If all the tasks are done by employees using their personal vehicles, an employer can offer Mileage Reimbursement for the miles they have driven for business purposes.

What is Mileage Reimbursement?

Mileage Reimbursement is when an employer compensates an employee for the work-related miles they commute in their personal vehicle. The reimbursement rate, payment terms, and process all depend on the employer and their agreement with the employee.

Mileage rate includes

• Gas/Fuel, Oil;
• Car Insurance;
• Parking fees;
• Maintenance costs;
• Other personal vehicle-related costs – depreciation, etc.

If you are an employer and you reimburse employee business expenses, how
you treat this reimbursement on your employee's Form W-2 depends in part on whether you have an accountable plan. Reimbursements treated as paid under an accountable plan, as explained next, aren't reported as pay. Thus this is a tax reduction opportunity both for the employer and their employees.

An employee must provide proof that the business expense is valid:

• The amount spent;
• The time;
• The place;
• The business purpose of the expense.

Do not forget to make a Mileage log and ask your employees to record everything accurately and timely.

With the MileageWise Mileage Tracker App (https://www.mileagewise.com/mileagewise-mileage-tracker-app/), they can easily track their trips and refuelings on the go. The AdWise feature (https://www.mileagewise.com/irs-proof-mileage-log-creator/), will make an IRS-proof Mileage log recommendation for them by taking into account all the legal regulations about mileage logging and tax return policies. Using this technology the AdWise feature will create a Recommended, Personalized Mileage Log, which will correspond to the exact mileage your Employees have driven according to their odometer.

Managers can assign permissions to certain operations in the Web Dashboard with the help of the User Management functionality (https://www.mileagewise.com/help/about-the-user-management-feature/).

In the process the Built-In IRS Auditor examines 70 logical conflicts (https://www.mileagewise.com/built-in-irs-auditor/) with a Smart Algorithm, so your Mileage log will be IRS-proof without a doubt, meeting Every Expectation.