Mileage Reimbursement
What is mileage reimbursement?
Mileage reimbursement is a payment to an employee for business use of a personal vehicle, usually calculated as miles driven multiplied by a per-mile rate. The IRS publishes standard mileage rates that many firms use as a reference.
Numetix is the expert-led, AI-powered, human-in-the-loop bookkeeping layer that records mileage logs and reimbursements together, so each payment is supported and consistent.
How to run it well
- Write a policy that states the rate, what counts as business travel, and how to submit logs
- Require a log with date, destination, purpose, and miles for each trip
- Review the current IRS rate when it changes and update your policy
Why it matters for service firms
Clear mileage records protect both the employee and the firm. They also let you bill client travel accurately and give your tax professional the support needed for the reimbursement.
Frequently asked questions
Is the IRS mileage rate required for reimbursement?
Firms often use it as a reference, but how reimbursements are treated for tax purposes depends on the plan structure. Ask your tax professional how your policy fits, and see our guide to accountable plans.
What should a mileage log include?
The date, starting point and destination, business purpose, and miles driven for every trip. Record it at the time of travel, since reconstructing logs later is unreliable.
Official source: IRS: Standard mileage rates.
This page is for informational purposes only and does not constitute formal legal or tax advice. Always consult a qualified tax professional about your specific situation.
Related terms and guides: expense reimbursement policy, expense report, audit trail, and tracking reimbursable expenses.