Employee Mileage Reimbursement Regulations?

Michigan.


Im trying to find the Regulations for Employee Mileage Reimbursement?

Ive looked all throughout IRS.GOV...only to find Rates, just like anywhere else I look.

Any help help would be greatly appreciated, thanks in advance!

Regulations for what?

If they have a qualified plan, they have to do some things and follow the regulations if they want to deduct it without it being income to you. If they don't, they don't HAVE to reimburse you. In fact, I have many clients who deduct employee mileage on their own tax return because the company did not reimburse.

If you're an employer wondering if/how you're legally required to reimburse your employees for mileage expenses...you're not.

O wow.

I am the Employer.

And that makes sense that the only thing similar to what I was looking for on IRS.GOV was rates.

So the goverment has control of how much an Employer has to pay for mileage but doesnt in fact enforce the Business to pay for mileage reimbursement?

eerelations said:

If you're an employer wondering if/how you're legally required to reimburse your employees for mileage expenses...you're not.

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At least not in Michigan. Although it is good company practice.

break_bread said:

So the goverment has control of how much an Employer has to pay for mileage but doesnt in fact enforce the Business to pay for mileage reimbursement?

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The government doesn't control how much you can pay, only how much you can deduct.

Furthermore the IRS rate is the max. You can reimburse less.

So the goverment has control of how much an Employer has to pay for mileage but doesnt in fact enforce the Business to pay for mileage reimbursement?

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I liked my way to say it. This way isn't quite correct.

The government doesn't control how much you can pay, only how much you can deduct.

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While I understand what you're saying, it is a bit problematical.

Can I pay my minimum-wage employee $100 a mile as reimbursement?

Since the presumption is generally that I cannot make a gift to an employee, what shall we do?

tranquility said:

Can I pay my minimum-wage employee $100 a mile as reimbursement?

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Sure you can. You could pay a million dollars a mile. But anything over the IRS max rate is taxable.

tranquility said:

Since the presumption is generally that I cannot make a gift to an employee, what shall we do?

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I don't know where you got the idea that you can't give gifts to your employees. You can, but they are taxable to the employee in most circumstances. Read the IRS publication on fringe benefits. Some types of gifts can be given and not taxed. Cash (or check, or direct deposit, or a VISA gift card, or anything easily converted to cash) is always always always always taxable.

If they have to pay taxes on it, it's not a gift.

I agree it is income to the recipient. It's called wages. Employers get to deduct wages.

What you missed, when you referred me to the publication on Fringe Benefits, was that I know that the over-reimbursement would make it a non-accountable plan and the amount would go into box 1 of the employee's W-2.

But anything over the IRS max rate is taxable.

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Everything is taxable in a non-accountable plan, not just the amounts above what an accountable plan would provide for.

I don't know where you got the idea that you can't give gifts to your employees

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Reading is FUNdamental. What I wrote was, "Since the presumption is generally that I cannot make a gift to an employee". Compare what I wrote with your restatement. De minimus is the key and not that it was intended to be a gift or not.

Let's try it this way.

Under Federal law and the law of 48 states, including Michigan, the employer has no legal obligation to reimburse and employee for mileage.

IF the employer chooses to do so, then he may reimburse them at any rate he chooses, up to but not exceeding the IRS rate. If he chooses to reimburse above the IRS rate anyway, the amount in excess of the IRS rate becomes taxable.

Your mileage (forgive me, I couldn't resist) may vary - if you are in California or Massachusetts.