Tracking Methods for Employees Who Are Reimbursed for Mileage

There are many businesses that require employees to go off-site and travel, using their own vehicles or company vehicles to get around. When driving is part of the job, employees will need some type of reimbursement to cover mileage accrued in their own vehicles, or they must have access to company vehicles with a fleet program and appropriate insurance. If you operate a company that necessitates hours on the road, take a look at the following methods of reimbursement to consider.

Driver Logs

You can have employees track their miles on paper, or, better yet, using an electronic log that can be accessed from a laptop or smartphone. Mileage will then be reimbursed with a per-mile rate, which is determined by the IRS. There is a standard mileage rate for various types of company driving, and it represents the maximum rate at which employees may be reimbursed per mile each year.

Flat Car Allowance

If you have more than 5 employees driving on company time, you may use a different method of reimbursement with a flat car allowance. The flat allowance is paid to employees quarterly, and it is not taxed or considered a part of the employees’ income. Instead of tracking miles individually, employees will report their gas expenses and repair bills related to business trips, and they will receive a flat reimbursement for these costs.

Fleet Program

If you want to mitigate the concern of employees using their own vehicles and receiving reimbursement, you might consider a fleet of company vehicles for employee use. These vehicles will be company-owned and insured, and they can allow you to more effectively manage maintenance and fuel costs while more closely monitoring employee mileage and driving time.


To explore the solutions that are right for your business, connect with Kalil & Associates in Tucson. We handle all business tax and bookkeeping needs, and we can customize solutions to fit your small business’s unique circumstances. Get in touch with us to learn more by visiting our website or calling (520) 628-4264.