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

Jun 25, 2019

askacpaicon
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. 

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

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

Pennsylvania CPA Journal

Read the latest from the Pennsylvania CPA Journal online or via the mobile app and digital edition.

Read More

CPA Now

Get the latest info on professional trends, management, and leadership skills on CPA Now.

Read More

PICPA 2020 Premier Sponsors

Platinum Sponsor

Gallagher Bollinger Logo
CPACharge


Gold Sponsor

Paychex logo


Bronze Sponsor

payroc-logo-hi-res
Capstan Logo

Interested in becoming a sponsor? Contact Kelli Comegys for packages and opportunities.