Tag Archive for mileage reimbursement

Mileage Reimbursement Mistakes Businesses Make

You know that a proper mileage reimbursement program can save your business time, money and boost compliance. Yet, we’ve seen many companies make mistakes with their programs. Here are some of the major mistakes your business should avoid.

Not Having A Clear Process

Nearly half of businesses with mobile employees don’t have a clear process or policy for mileage reimbursement. Some companies require a mileage log, while some really want one but still pay out reimbursements anyways because they don’t want to upset workers. Read more

Claiming Mileage On Taxes For Drivers


There’s been an explosion of on-demand apps that deliver food straight to your doorstep. Of course, this is a well-worn tradition for pizza restaurants. Can the pizza delivery drivers and on-demand food deliverers claim their mileage on taxes?

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Car Allowances vs. Mileage Reimbursement

mileiq, mileage reimbursement, car allowances

If you use your personal car for your own business, you can take a mileage deduction to save on your taxes. But what if you drive your own car for your W2 job? Your employer can reimburse you and that often comes through a car allowance or a mileage reimbursement.

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“C” Is For Cars

iStock_ car XSmall“C” is for cars which can have a wide variety of tax implications.  If you commute with your used car to your W-2 job there isn’t a lot of tax implications, but for people who use their vehicle as part of a small business or self-employment, the tax implications are important.

The tax basics of cars are deducting the auto tabs each year and claiming mileage for volunteering efforts.  If the car is used for business, it gets more complicated.  You have the option of claiming either the standard mileage or the actual expenses for the vehicle.  With either method you choose, make sure to keep track of your miles driven.  The standard mileage is just that – a standard amount multiplied by the business miles driven.  For 2013 the standard mileage rate is 56.5 cents per mile.  The standard mileage rate is adjusted every six months by the IRS based on inflation and the price of gas.

Standard mileage is the easier method.  You don’t need to keep track of receipts, but you do need to keep careful track of the miles driven for business and personal use.  I would recommend writing down the odometer reading at the beginning of the year, and then keeping a log of the business miles driven.  Keep a pad of paper in the car and write down the date and the miles driven when you are driving for business reasons.  If you get pulled for an audit, the IRS is definitely going to look at your business miles.  If you don’t have good records it’s going turn your audit into a big hassle. Read more

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