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FAQ
How does mileage reimbursement work for companies?
Companies compensate employees for using their personal vehicles for work-related trips by paying them based on a set mileage rate or actual vehicle expenses.
What is the IRS rule for mileage reimbursement?
The IRS sets a standard mileage rate, which covers vehicle-related expenses like gas and maintenance. Companies can use this rate or choose alternative methods.
How much should a company reimburse for mileage?
Companies can follow the IRS standard mileage rate, but they can also create a custom rate or reimbursement method, as long as it is fair and documented.
Can the IRS tax company mileage reimbursement?
If a company reimburses above the IRS standard rate or if employees fail to provide proper documentation, the excess or the entire reimbursement can be subject to taxation.
