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Mileage Expand / Collapse
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Posted 5/13/2008 4:47:20 PM
 
Hello - I'm wondering if anyone has any insight as to whether this would be taxable to the employees or not. We have an office that is about 28 miles away from our main office. We are considering paying employees who go there twice a week for mileage to go there directly. Since this would be home to work travel, does anyone know whether it would be taxable to the employee?

Thanks!
Post #1875
Posted 5/23/2008 12:04:44 PM
 
If the travel time exceeds the commute time the employee takes to make it to the "main" office, the answer is yes you have to compensate them for the excess time it takes to travel, even though it is travel from home to work. The travel time in excess will also have to be included in the calculation of overtime. You may consider reimbursing your employees the current IRS mileage rate of $0.505 per mile....that reimbursement is non-taxable unless you pay them an amount above that rate. The difference may be considered taxable wages. I hope that helps.
Post #1893
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