Alex How much does company pay for mileage?
57.5 cents per mile for business miles (58 cents in 2019) 17 cents per mile driven for medical or moving purposes (20 cents in 2019)
How much does an employee get back for mileage?
Then the employee is kicking back about 24 cents per mile (since the federal mileage rate is around 54 cents). If this employee drives 100 miles per week, that’s $24.
When does an employer have to pay for travel time?
An employer must pay an employee for travel time if the employee is performing actual work during that time—when the employee is using his or his employer’s vehicle for work-related purposes. John is a plumber. Each day, he must report to his employer’s headquarters at the start and the end of his shift.
When do employers have to pay for commute time?
This is, unfortunately, an often-overlooked area. While employers understand that the FLSA requires employees to be paid for all hours worked, they also know that “hours worked” typically starts upon arrival at the work site—not at the time the employee leaves home.
Is there an optional mileage reimbursement rate for employees?
The optional standard rate is just that: optional. Another approach is to require employees to keep track of actual travel-related expenses, but this is considered more onerous for both parties as it complicates tax accounting and expense record keeping. Some employers choose to reimburse at less than the IRS rate.
Do you have to pay employees for drive time?
One of the top 10 wage and hour mistakes employers make is related to travel time. Some employers factor drive time out of overtime calculations. Others don’t pay employees for drive time at all. Neither is the correct and legal practice. Employees who travel from job site to job site during a normal day’s work need to be paid for that time.
An employer must pay an employee for travel time if the employee is performing actual work during that time—when the employee is using his or his employer’s vehicle for work-related purposes. John is a plumber. Each day, he must report to his employer’s headquarters at the start and the end of his shift.
What do you need to know about employee mileage reimbursement?
Reimbursement arrangements used employers should meet three basic criteria. They must be made for deductible business expenses, which would include travel for business purposes. Claims must be substantiated by employee records that prove the time, place, and purpose of the travel.
Do you have to pay for employee mileage in California?
California and Massachusetts require mileage reimbursement. Check your state’s labor department website for the most up-to-date regulations. You can’t expect employees earning at or near minimum wage to pay for their business driving expenses.