Mileage Guide for Employees

best mileage reimbursement platform for mobile employees

If you’re employed by a company and use your personal vehicle for work, your employer will likely be reimbursing you for your mileage and expenses. You may receive mileage reimbursement if you’re driving from the office to meet clients, pick up office supplies, or doing anything else work-related.

Employees may have some questions about whether they qualify for any reimbursements from their employer or not. Click here for information on mileage log requirements.

  • If I drive a company car, will mileage reimbursements be provided?
  • If I use my own vehicle for business purposes, will my employer provide me with reimbursements?
  • What is the best way to track my mileage?
  • Should I do mileage expense reporting each year for tax purposes?
  • What qualifies as company-related mileage expenses?

Related: Are You An Independent Contractor Or An Employee?

Employee Mileage Guide: I Drive a Car Provided by My Employer

If your employer provides you with a vehicle for work-related purposes, you are usually not eligible for mileage reimbursement. You more than likely will not need to track your mileage or expenses (unless the company wants you to for internal data purposes).

You may be reimbursed for certain expenses, like gas, parking, or tolls, but you won’t be reimbursed the same way as if you used your personal vehicle. The standard mileage rate includes the cost of operating a vehicle, which doesn’t fall on you if you’re not using your own car.

The specifics of how your company should reimburse you for expenses incurred while operating a company vehicle should be made clear to your employer.

employee driving company car track expenses

Employee Mileage Guide: I Drive a Car Owned or Leased by Me

If you drive your own car while conducting business for your employer, you are eligible for reimbursement. Typically, your employer will use the standard IRS mileage rate.

However, your company may choose to implement other methods as well. Regardless, you will need to track your mileage to ensure accurate reimbursements.

Related: 4 Best Tips For Road Warriors (2021)

For decades, employees have had to use inaccurate and time-consuming pen-and-paper mileage tracking methods. Today, powerful mileage tracker apps like TripLog make the process significantly faster and easier.

accountable plan irs mileage tracker

Employee Mileage Guide: The Importance of Employee Mileage Tracking

Recording each trip used for business purposes that qualify for reimbursement is important. There are various tools available that are affordable and easy to use. One of the best examples of such an expense management tool is TripLog.

Finally, the IRS indicates that companies must offer a “reasonable period of time” to track, submit, and manage mileage expenses between an employer and employee. The IRS states these points on their website:

  • You receive an advance within 30 days of the time you have an expense.
  • You adequately account for your expenses within 60 days after they were paid or incurred.
  • You return any excess reimbursement within 120 days after the expense was paid or incurred.
  • You are given a periodic statement (at least quarterly) that asks you to either return or adequately account for outstanding advances, and you comply within 120 days of the statement.

Related: How Employees Working From Home Deduct Their Mileage

Employee Mileage Guide: What Counts As a Reimbursable Expense?

Actions such as driving to meet prospects or close sales deals, managing company printing at the print shop, or other company-related activities usually qualify for reimbursement if an employee uses their own personal vehicle.

With that said, some activities, such as commuting to work from home, driving to and from lunch, or picking up a friend in the middle of the workday are not meant to be reimbursed by an employer their employee. Thus, employees must accurately track their drives and be able to easily differentiate business and personal trips.

TripLog: The Best Way To Track Mileage

TripLog’s mileage and expense tracker is one of the easiest and most cost-efficient methods for tracking mileage expenses. With just one swipe, drivers can easily classify their trips as business or personal!

In addition, the app begins tracking your mileage as soon as you start driving. Say goodbye to outdated methods that require you to pull out a pen and paper.

Employers can also set up various reimbursement plans via our intuitive dashboard. Download the #1 company mileage tracker for free today on iOS or Android, or set up a complimentary live web demo.

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Mileage Reimbursement Savings Calculator

Using outdated manual mileage logs can cost businesses thousands of dollars per year in lost time and incorrect reimbursements. See how much TripLog can help you save!

Number of drivers

Average miles daily per person​

Number of trips daily

Cents-per-mile

Annual mileage reimbursement costs based on the numbers you provided.

Annual Mileage Reimbursement

50 mi/day x 100 drivers x $0.54 (5 days x 50 wks)

$675,000

This is the inline help tip! You can explain to your users what this section of your web app is about.

According to research, on average employees inflate the mileage by 25% when self reported.

Estimated Reimbursement Savings

25% x Annual Mileage Reimbursement

$168,750

People on average spend 2 minutes on manually recording trips.

Manual Entry Hours

2 mins x 10 trips/day x 100 drivers (5 days x 50 wks)

8,334 hr

Taking national average $25 hourly rate.

Estimated Labor Savings

Avg. $25/hr x Manual Entry Hours

$208,334

Your Company

could save

(Labor Savings + Reimbursement Savings) / Number of Drivers

$4,167

per driver