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Occasional Member - Level 1

Mileage reimbursement

I'm hoping to find out what other companies are doing for the mileage reimbursement:

 1) What is your company's policy for deducting normal commute (home to office)? What if employee works from home and doesn't have an assigned office?

2) What is your company's policy for the mileage reimbursment above a standard 5 day work week commute?


Thank you for your input!


Routine Member - Level 1

If you are a US based company, I recommend following the IRS guidelines:

What does the IRS consider as business drives?
IRS only lets you deduct trips that are for business. Here are the drives the IRS considers to be business:


1) You can take the mileage for travel from your office/work site to the second place of business 

2) Driving for business-related errands qualifies as a business drive. 
3) Trips to meet with clients or vendors 

4) The miles you drive to and from the airport for a business trip 

5) Drives to and from odd job locations can be written off that are work releated

6) Driving from home to a temporary work location that you expect to last less than one year


WHAT THE IRS SAYS NO TO: You cannot deduct mileage to and from work. The IRS defines the first trip from your house and the last drive back as a non-deductible commute. This is true even if your commute is far. The IRS considers where you live a personal choice and, thus, a personal expense.  Working during a commuting trip is still considered commuting. This includes making business calls, listening to work-related tapes or having business discussions.



For your asks both #1 and #2 - We follow the IRS guidlines.