What is a standard average company reimbursement to employees for miles driven on the job? What kind of guide is used? The IRS formula which I believe is around 55 cents a mile? (Pretty high imho). If there is no set law/guide what is reasonable?

TIA

$.54/mile is the maximum IRS amount allowed for a business to claim for 2016.

*The following if off the top of my head, but I think it's still correct*

You are not required to reimburse employees (but there is typically fall out if your don't) and if you don't, employees may claim the write off on their taxes as "unreimbursed business expenditures". If you reimburse a partial amount, the employee may write off the difference from $.54/mile on their taxes

https://www.irs.gov/uac/newsroom/2016-standard-mileage-rates-for-business-medical-and-moving-announced

The IRS number is meant to cover both the fixed and variable costs of operating your own vehicle as a prorated type of calculation for the assumed conditions...... (you know how that goes).

I see lots of companies in my industry that reimburse employees $0.31 per mile right now. Their internal business people generally try to justify it by saying something along the lines of "that is the variable cost portion...we aren't paying any fixed costs for reimbursement". I don't know if anybody publishes that number or methodology so maybe the line is urban legend from the business people.

.54 is what we are doing this year. It can change each year.

I've gotten what the IRS rec is.

My company does .55 per mile but now I have a company vehicle.

i have always received the IRS number

ColinAggie said:

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I've always gotten the IRS number. If someone is concerned about paying the IRS mileage, that they in turn get to write off, they've likely got bigger problems to worry about than mileage.

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lol including having done their return wrong if I understand what you are saying. As long as it is an accountable plan, the amount you receive for mileage reimbursement at, or below, the IRS rate is not income. And you get no deduction for it, unless your legitimate miles are reimbursed at a rate below the IRS rate. Even then, it is subject to deduction only to the extent it exceeds 2% of your AGI which means, for almost everyone, no deduction.

Sandman98 said:

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The motto for people reimbursed at the IRS amount is "if you can't sell, drive like hell".

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I receive .35 per mile plus $400 a month on my paycheck.

They count the $400 as taxable income so it's actually a bit less.

I was getting a set amount per pay period but it was under the $0.54/mile amount so the difference can be written off still.

The Wonderer said:

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$.54/mile is the maximum IRS amount allowed for a business to claim for 2016.

*The following if off the top of my head, but I think it's still correct*

You are not required to reimburse employees (but there is typically fall out if your don't) and if you don't, employees may claim the write off on their taxes as "unreimbursed business expenditures". If you reimburse a partial amount, the employee may write off the difference from $.54/mile on their taxes

https://www.irs.gov/uac/newsroom/2016-standard-mileage-rates-for-business-medical-and-moving-announced

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Though they'd only be able to write off an amount commensurate with their income if I remember right. It is much better to just reimburse them.

VanZandt92 said:

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The Wonderer said:

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$.54/mile is the maximum IRS amount allowed for a business to claim for 2016.

*The following if off the top of my head, but I think it's still correct*

You are not required to reimburse employees (but there is typically fall out if your don't) and if you don't, employees may claim the write off on their taxes as "unreimbursed business expenditures". If you reimburse a partial amount, the employee may write off the difference from $.54/mile on their taxes

https://www.irs.gov/uac/newsroom/2016-standard-mileage-rates-for-business-medical-and-moving-announced

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Though they'd only be able to write off an amount commensurate with their income if I remember right. It is much better to just reimburse them.

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If I recall, it's what's over 2.5% of AGI. I'm not a CPA though. I've always been reimbursed or reimbursed my employees the full IRS rate.

The Wonderer said:

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VanZandt92 said:

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The Wonderer said:

---

$.54/mile is the maximum IRS amount allowed for a business to claim for 2016.

*The following if off the top of my head, but I think it's still correct*

You are not required to reimburse employees (but there is typically fall out if your don't) and if you don't, employees may claim the write off on their taxes as "unreimbursed business expenditures". If you reimburse a partial amount, the employee may write off the difference from $.54/mile on their taxes

https://www.irs.gov/uac/newsroom/2016-standard-mileage-rates-for-business-medical-and-moving-announced

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Though they'd only be able to write off an amount commensurate with their income if I remember right. It is much better to just reimburse them.

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If I recall, it's what's over 2.5% of AGI. I'm not a CPA though. I've always been reimbursed or reimbursed my employees the full IRS rate.

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That is what I was trying to say. Couldn't remember the percent. I know I haven't been able to take business expenses for a while etc

Mine is like .35. but we rarely drive

amazed that any company would not pay the IRS maximum.

CJS4715 said:

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I've never worked for a business that deviated from the IRS mileage rate.

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These are businesses where the owner has brought his new wife (#2 or 3) in to run the office because she has a degree in Marketing and he doesn't want her home alone or at the country club while he's at work.

CJS4715 said:

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I've never worked for a business that deviated from the IRS mileage rate.

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My wife's company just switched their policy to less than the IRS rate. They also reimburse based on shortest possible trip instead of actual miles driven.