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Mileage Reimbursement Rules Utah

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  • Mileage Reimbursement Rules Utah

    HI,

    I have a question about the rules for mileage reimbursement. I left early from work yesterday to go pick something up for work. I calculated my mileage to that point. Then I went home, which is nowhere near the place I picked up the stuff for work. When I came in today, my co-worker said that in order to legally get reimbursed for my trip there, I would have had to come back to work and not go straight home. Is that true??

    Thanks!

  • #2
    First of all, there is no federal law nor a law in your state requiring mileage reimbursement at all. It is strictly up to the company as to whether or not they reimburse you at all.

    Now, if your company chooses to do so, what then becomes an issue is what the actual business expense is, because any portion of the reimbursement that is not a valid business expense is taxable wages to you.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      Great! Thanks!!

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      • #4
        So, to be clear, the IRS doesn't have a law that says your errands you run for work have to be round trip, with you returning to work afterward?

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        • #5
          No, it does not. The IRS doesn't care if the company reimburses you for every single mile you put on your car, whether personal or business. What the IRS does care about is whether any portion of what reimbursement you DO get is taxable or not.
          I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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          • #6
            Thanks so much, Patty!

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            • #7
              You're welcome.
              I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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              • #8
                While I agree with everything Patty said, I am going to give a somewhat different answer. There are actually two unrelated issues involved with the question.
                - Mileage reimbursement is as described. There are exactly two states with mileage reimbursement rules (CA, MA), neither of which is UT. And there is no federal mileage reimbursement rule per se. Although federal DOL does have a "free and clear" rule that could in theory apply if you had an employee paid at or near minimum wage and then forced them to incur unreimbursed expenses. That is very conditional though. An employee making more then MW would find it very difficult to use that particular argument.
                - The unspoken elephant in the room is not mileage, but rather hours worked. If the drive to pick up something is work related, then we have a possible hours worked situation. The work day might not end until after the pickup occured. Again, this is federal DOL (FLSA), not IRS. The IRS is only interested in collecting taxes (aka their money).
                "Reality is that which, when you stop believing in it, doesn't go away".
                Philip K. **** (1928-1982)

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