Does a company have to reimburse mileage?


Quick Answer

Companies don't have to offer a mileage reimbursement program, but offering one is a good way to attract and retain employees. When employees have to spend their own money to cover work-related travel expenses, it offsets the value of the job based on compensation.

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Full Answer

If companies do have mileage reimbursement, they don't necessarily have to offer a minimum amount per mile. Some companies choose to follow the IRS recommended amount for reimbursement. The company may also choose have to note the difference on employee payroll and tax records as an alternative reimbursement structure. Miles driven for daily commutes to and from work aren't typically included in mileage reimbursement payments.

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