What is the reimbursement rate for mileage for your vehicle?

Question

I currently have been moved to a different position in my company and it entails some frequent driving to different offices. The company vehicle is usually not available, so I have to use my own vehicle. My employer reimburses us .25 cents a mile, even though I understand the state rate is about .46 cents a mile. Is this legal for him to do? Some co-workers are thinking about reporting this to the labor department. I live in Erie County, in New York State

Answer 1

Had a job in which I received a lump sum per month for my vehicle use, did not matter how much I drove.  I am not in New York, though.   It seems employers can do what they want, it is up to you to decide if it works for you or not.  Seems low to me.

Answer 2

my company pays .485 for each mile. I think this is the national average but I can't be sure.

I think your employer should be paying you more than .25. Being the price of fuel I don't think you are breaking even. Unless of course you are driving a motor scooter ;-)

Have a talk with your boss. If you do a considerable amount of driving the costs can really add up.

Have a discussion with your boss before reporting him

Answer 3

Your employer can choose to reimburse you at any rate they choose.  What you can do is file a deduction on your taxes for the difference between what your company pays and the allowed mileage reimbursement rate of 48.5 cents per mile.  This will give you an additional deduction of 23.5 cents per mile.

Your company shouldn't force you to take on that cost.  I'd ask them why they chose 25 cents per mile since that will barely cover your fuel costs, never mind wear and tear and depreciation of your vehicle.

Keep detailed records and enjoy that fat deduction next April!