Can an employee traveling and working between two assigned sites get mileage reimbursement per the Fair Labor Standards Act?

by Joseph P. Cunningham, CPA | Jun 25, 2019

If an employee worked between two assigned sites, can the employee get mileage reimbursement traveling between the two sites per the Fair Labor Standards Act?

There is no law that says employers have to offer mileage reimbursement. Many do because it’s a smart way to attract and retain employees. Reimbursements made at the standard IRS rate are not considered income, so they are not subject to tax. Companies also get a tax break because the reimbursement payments are a deductible business expense. Note that the key here is that the employee is travelling between two work sites – not between his/her home and place of business. IRS does allow standard expense reimbursement between two different worksites only. 

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Answered by: Joseph P. Cunningham, CPA, is an associate professor at Wilson College in Chambersburg, Pa.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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