Mileage Reimbursements

[Andi]

Is it the law that I have to reimburse my
employees for mileage? It wasn't
tracked and they are now demanding it. The business is located in California and
has approximately 60 employees.

 

[Henry T]

This is a state specific matter so ask the California Labor Department.

 

[lawguy]

in California, employers are required to reimburse employees for all expenses incurred in doing their job. you need not, however, pay mileage for a "normal commute."

mileage payments pay employees for "all" expenses associated with their business use of their car. so, if an employee's car gets stolen while on company business (and you pay mileage), you need not replace the employee's car. BUT, if you don't pay mileage, you would be on the hook for replacing the car!

the IRS allows you to pay 31 cents/mile (this year) and 32.5 cents/mile (after 1/1/2000) as a business expense without it being taxable to the employee.

it's a good idea to reimburse employees for mileage. do it.