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Mileage reimbursement question

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by nerdy

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Hi there!
Does anyone know if it there is any law stating that if you use your car for work purposes, if they have to pay you mileage?
I work at a company that has 2 building that are about 8 miles apart and I was told today that we do not get reimbursement for mileage if it is in our "normal job function." I would think they would have to pay you for the wear and tear on your vehicle and also for the gas that you use, because all you are doing is giving them all that for free and I just dont think that is right... So I wanted to do a little research on it and see if there is any law out there.. If anyone knows of any please let me know...

5 replies

by thechas

Company reimbursement of millage and other job related expenses is a "perk" as far as I know.

There are IRS rules that regulate what can be reimbursed, and at what rate.

Still, I am not aware of any law that requires your employer to reimburse you for ANY travel expenses.

As long as your company does not reimburse these expenses, you can take the standard mileage deduction on your income tax for all business travel. So long as you keep detailed records of the travel.

Travel and other reimbursements are part of "perk" packages that employers use to attract or keep employees. In our tightening global labor market, companies are looking at every expense to see if they can reduce or eliminate it. "Perks" would be high on the list of things to eliminate.

I recommend that you look at what you can do to reduce the number of trips you need to make between sites per day. Work with your supervisor, and come up with a plan to limit trips to 1 or 2 per day. With an exception for "emergency" situations.

Chas

by nerdy

K with what you said. Do you know anything about insurance then?? I talked to someone and they told me that your personal insurance doesnt cover you if you are transporting stuff or traveling for work, Do you know anything about that? My plan is to call my insurance guy, but havent gotten to it yet! :)

Thanks for the other info!

by thechas

There are limitations on personal items inside a vehicle as part of most insurance policies.

You will need to add a rider to your policy to cover accidental damage to materials inside your vehicle.

Theft coverage for computer items may be expensive depending on the location of your home, and the business.

You should also check with the accounting or lose management department at work.
During work hours, materials in your vehicle being transported as part of your work activity may be covered by the companies insurance.

As a side note, if you are in an accident, and not at fault, while on company business, your employer may be liable for some or all of your out of pocket and deductible expenses incurred for you or your vehicle.

Chas

by nerdy

Yeah I went home and called my insurance guy and he did say that it depends on your policy and also your insurance company, but he also put some other things for me to look at. for one if you do get in an accident and you get injured, you are on company time and that will most likely be workman's comp. Also if you get into an accident and your insurance may or may not cover you, your company has a good chance of getting sued by the insurance company... He said that the company most likely has a insurance company that takes care of the insurance but if you arent insured then the company will be screwed!! I dont know I am going to bring up all these factors when I talk to the personnel here!

Thanks for all the comments and help here! If you have any more please feel free to add yours!

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