General Inquiries

Gas Reimbursement vs Mileage Reimbursement

  • 1.  Gas Reimbursement vs Mileage Reimbursement

    Posted 17 days ago
    Hello,

    We have an an employee who travels from out of town to another for work at one our job sites. The company wants to pay for his gas coming at the beginning of the week and going back at the end of end of the week. Is that the right thing to do vs mileage reimbursement at the IRS rate?

    TIA


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    Christine Rivera
    Controller
    Via Technology, LLC
    San Antonio TX
    (210) 227-7726
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  • 2.  RE: Gas Reimbursement vs Mileage Reimbursement

    Posted 16 days ago
    In order for your payment to the employee to be considered paid under an accountable plan (and, therefore, not reportable as an addition to his or her taxable wages), I think you would want to reimburse the employee at a rate per mile that is equal to or less than the federal rate ($.58 per mile for 2019) based on business miles reported to the company by the employee.

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    Daniel Lacey
    Clark Schaefer Hackett
    Columbus OH
    (614) 885-2208
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  • 3.  RE: Gas Reimbursement vs Mileage Reimbursement

    Posted 15 days ago
    This is a reimbursable expense provided he submits receipts on an expense report. Not added to w2 like allowance. If you pay a fixed amount per week then run through payroll.

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    Angel Goldman CCIFP, MBA
    CFO
    Bartlett Brainard Eacott
    Bloomfield CT
    (860) 922-5009
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  • 4.  RE: Gas Reimbursement vs Mileage Reimbursement

    Posted 14 days ago
    Reimbursement of the cost of gasoline would only be excludible  from W-2 earnings as expense reimbursement under an accountable plan if you the employee provided support for use of all of the gasoline for business purposes.  That would seem a hard fact to provide documentary evidence for if the gas was put in a personal (mixed use) vehicle.​

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    Daniel Lacey
    Clark Schaefer Hackett
    Columbus OH
    (614) 885-2208
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