VARIATIONS IN MILEAGE
REIMBURSEMENT PROGRAMS:
WHAT YOU NEED TO KNOW
Do your company's mobile employees drive more than 5,000 miles a year? If they do, the mileage
reimbursement program you administer should be a top priority. An incorrectly administered mileage
reimbursement program can put your company at great risk of significant overspending and even a
class ac on lawsuit.
Unlike hotels, airlines or restaurants, vehicles don't provide receipts. Addi onally, mee ng the needs
of mobile employees goes beyond just reimbursing them for gas and tolls. Mobile employees incur
both fixed costs (e.g. car insurance premiums, license fees and taxes) as well as variable costs (e.g. fuel,
vehicle maintenance and re wear) when they drive. Accoun ng for those costs can make proper mileage
reimbursement challenging. To complicate ma ers more, these expenses differ from employee
to employee, from trip to trip and from state to state.
Fortunately, advances in technology have now made it easy to administer a fair and accurate mileage
reimbursement for each individual employee.
