My Company Reimburse Mileage?

As an employee who frequently uses your personal vehicle for work-related purposes, you may wonder whether your employer is required to reimburse you for mileage. The answer to this question depends on a variety of factors, including state laws, company policies, and the nature of your job responsibilities.

State Laws and Company Policies

Many states have laws that require employers to reimburse employees for work-related mileage. For example, California Labor Code Section 2802 requires employers to reimburse employees for all necessary expenditures incurred as a direct result of their job duties. Other states have similar laws in place to protect employees from bearing the financial burden of using their personal vehicles for work.

Case Studies

In a recent study conducted by the Economic Policy Institute, it was found that more than half of employers in the United States do not reimburse their employees for work-related mileage. This has led to a significant financial burden on employees, particularly those who work in industries that require frequent travel, such as sales and delivery services.

Calculating Reimbursement

Employers who are required to reimburse employees for mileage often use the standard mileage rate set by the IRS, which is updated annually. For 2021, standard mileage rate 56 cents per mile. Employers may also choose to use their own mileage reimbursement rate, as long as it meets or exceeds the IRS standard rate.

Take Action

If believe employer reimbursing work-related mileage required law, may best interest consult employment law attorney. They can help you understand your rights and pursue legal action if necessary.

Whether company required reimburse mileage depends various factors, including State Laws and Company Policies. If you believe that you are entitled to reimbursement but are not receiving it, it may be worth seeking legal guidance to ensure that your rights are protected.

 

Reimbursement for Mileage Contract

As of [Date], this contract is entered into between [Company Name] (hereinafter referred to as “Company”) and [Employee Name] (hereinafter referred to as “Employee”).

Whereas, Employee is required to use their personal vehicle for business-related purposes on behalf of the Company, and is seeking reimbursement for mileage incurred. This contract outlines the terms and conditions of reimbursement for mileage.

Clause	Description
1. Mileage Reimbursement	The Company agrees to reimburse the Employee for mileage incurred while using their personal vehicle for business-related purposes at the rate of [Rate] per mile. This reimbursement is subject to applicable laws and regulations governing mileage reimbursement.
2. Submission of Mileage Records	Employee agrees to maintain accurate records of mileage incurred and submit these records to the Company on a regular basis, in accordance with Company policies and procedures.
3. Compliance Tax Laws	Both parties agree to comply with all applicable tax laws and regulations related to mileage reimbursement, including the reporting and documentation requirements set forth by the Internal Revenue Service (IRS).
4. Termination of Reimbursement	The Company reserves the right to terminate or modify the reimbursement for mileage policy at any time, with or without cause, upon written notice to the Employee.
5. Governing Law	This contract shall be governed by and construed in accordance with the laws of the state of [State], without regard to its conflict of laws principles.
6. Entire Agreement	This contract constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether oral or written.

IN WITNESS WHEREOF, the parties have executed this contract as of the date first above written.

Company: [Company Name]

Employee: [Employee Name]

 

Popular Legal Questions: Does My Company Have to Reimburse Me for Mileage?

Question	Answer
1. Is my employer legally required to reimburse me for mileage?	Well, well, well! When it comes to mileage reimbursement, it`s not just about being nice to your employees. In many places, it`s actually the law. Some states require employers to reimburse employees for work-related mileage expenses. Check your local laws to see if your employer is legally required to provide mileage reimbursement.
2. How much should my employer reimburse me per mile?	Ah, the age-old question! While there is no federal law mandating a specific rate for mileage reimbursement, the IRS sets a standard mileage rate each year. Employers often use this rate as a guideline for reimbursing employees. However, some employers may choose to reimburse at a higher rate as well. It`s worth looking into what your employer`s policy and local laws dictate.
3. Does it matter if I use my personal vehicle for work-related travel?	Good question! Whether you use your personal vehicle or a company car for work-related travel, you may still be entitled to mileage reimbursement. However, if you`re using a company-provided vehicle, the reimbursement may be structured differently. Make sure clarify employer.
4. Do I need to keep track of my mileage for reimbursement?	Absolutely! Keeping accurate records of your mileage is crucial when it comes to reimbursement. This can help you substantiate your claims and ensure that you receive the correct amount. Plus, it`s always a good practice to keep track of your business-related travel expenses.
5. Can my employer refuse to reimburse me for mileage?	Well, it`s not that simple! If your employer is legally required to provide mileage reimbursement, they cannot simply refuse to do so. However, if there is no legal obligation, your employer may have the discretion to decide whether or not to reimburse for mileage. Check the laws in your area to understand your rights.
6. What if my employer doesn`t reimburse me for mileage expenses?	Ah, the dreaded scenario! If your employer fails to reimburse you for mileage expenses when it is legally required, you may have grounds for a complaint or legal action. It`s important to document the mileage, keep records of your requests for reimbursement, and seek legal advice if necessary.
7. Can I negotiate a higher mileage reimbursement rate with my employer?	Absolutely! If your employer has a standard mileage reimbursement rate, you may be able to negotiate a higher rate, especially if the standard rate does not cover your actual expenses. It`s worth discussing employer see adjustment made.
8. Are there any tax implications for mileage reimbursement?	Oh, the wonderful world of taxes! Generally, mileage reimbursement is not considered taxable income if it meets certain criteria. However, it`s always best to consult with a tax professional to understand the specific implications for your situation.
9. Can my employer require me to use my personal vehicle for work without reimbursement?	Now, that`s a tricky one! It depends on the specific circumstances and the laws in your area. If your employer requires you to use your personal vehicle for work-related travel, they may be obligated to provide reimbursement. Consulting with a legal professional can help clarify your rights in this situation.
10. What should I do if my employer provides a company car but refuses to reimburse me for mileage?	Oh, the double whammy! If your employer provides a company car but refuses to reimburse you for mileage, it`s important to seek clarity on the reimbursement policy. While the situation may be different from using a personal vehicle, you may still be entitled to some form of reimbursement for work-related travel expenses.