Legal reimbursement for gas mileage in New Jersey?

Question

Hello -

Sometimes I have to travel at work to visit clients. We have always been reimbursed .445 cents per mile when we travel. My boss just decided to reduce the mileage reimbursement to .20. Do states have legal reimbursement rates? Can he do this?

Answer 1

Your boss isn't legally required to reimburse you as long as you know it's part of the deal.  You can deduct anything between the federal milage rate, currently 50 1/2 cents per mile, and what you are reimbursed on your taxes.

Answer 2

i believe the FEDERAL rate is something along the lines of 50.2 cents... that's according to my job in NJ

Answer 3

that is strictly between your boss and you. He just doesnt want to but a business car.

20 cents a mile is way too little  and I would not use my car for him for that.