Click here to subscribe to our Bowles Law e-letter
Click here to subscribe to our Bowles Law e-letter
The IRS issues annually its optional standard mileage reimbursement rates for an employee’s business use of his or her vehicle. The IRS has decreased the rate from 56.5 in 2013 to 56 cents per mile in 2014.
The government calculates the mileage rate by an annual study of the fixed and variable costs of operating an automobile.
Under California Labor Code Section 2802, employers must fully reimburse employees for all work-related expenses actually and necessarily incurred. Many employers choose to use the IRS mileage reimbursement rate to satisfy their reimbursement obligation.
However, if the employee can show the IRS reimbursement rate does not cover all of his/her actual and reasonable business-related vehicle expenses, the employer must pay the difference.
For more details on required reimbursements to employees for business purposes, visit www.IRS.gov.
If you are an employer facing possible litigation, or have an employee issue on which you need immediate guidance, call us to set up a consultation, or submit your message.
NOTE: Use of this website does not make one a client of the Law Offices of Timothy Bowles (“Firm” or “Bowles Law”). Establishing an attorney-client relationship and the confidentiality that comes with it depends on the Firm’s prior confirmation that no factor, including any conflict of interest (for example, our representation of another party adverse to you), exists to prevent that establishment. If you have confidential information that you would like to provide a Bowles Law attorney, please communicate directly to one of our attorneys, in person, by telephone, email, fax or other written means. Do not use this website to offer or communicate confidential information about any legal matter.