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Old 09-02-2009, 06:10 PM
 
Location: NJ
854 posts, read 2,863,517 times
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Hi, just a quick question: I have to go to Philadelphia tomorrow for work. I do not have a mileage-allowance so I will get a certain amount of $$ paid for each mile. My roommate told me there's a law for what they have to pay as a minimum but I can't find anything about it.

Any help is appreciated
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Old 09-02-2009, 06:13 PM
 
1,235 posts, read 3,954,237 times
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yes, the IRS sets it. looks like it's 55 cents per mile.

IRS Announces 2009 Standard Mileage Rates
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Old 09-02-2009, 06:41 PM
 
Location: Pennsylvania & New Jersey
1,548 posts, read 4,315,921 times
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Default MUST pay versus MAY pay

Quote:
Originally Posted by diddiyo View Post
Hi, just a quick question: I have to go to Philadelphia tomorrow for work. I do not have a mileage-allowance so I will get a certain amount of $$ paid for each mile. My roommate told me there's a law for what they have to pay as a minimum but I can't find anything about it. Any help is appreciated
Quote:
Originally Posted by luckyshoes View Post
yes, the IRS sets it. looks like it's 55 cents per mile. IRS Announces 2009 Standard Mileage Rates
Your post implies that you're looking to know what the minimum amount required by law is that the company must pay you for your use of your own personal vehicle to transport yourself to Philadelphia. Do I understand you correctly?

I don't think there is one. Your employer could chalk up the expense to your cost of commuting.

However, Luckyshoes correctly notes the automotive standard mileage rates for federal income tax purposes, which represent the deduction per mile of vehicle use that some people may claim on their tax returns. Though many companies reimburse their employees at these rates as a measure of justice and goodwill, I'm not aware of any law that says the company must pay you this rate.

But I'm confused by this: On one hand, you say you do not have a mileage allowance but then go on to say that you will get a certain amount of $$ paid for each mile. "A certain amount of $$ paid for each mile" is the very definition of a mileage allowance, isn't it?

Ask your boss what mileage rate you'll be reimbursed at. Your employer should tell you up front. If you like it, smile! If you don't like it, negotiate it up. If that doesn't work, tolerate it. If you can't tolerate it -- well -- many local pizzerias are looking for help.

It sounds like you'll be fairly reimbursed. Best wishes to you.
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Old 09-02-2009, 06:51 PM
 
9,124 posts, read 36,385,838 times
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Technically, if you're not going to your normal office first before going to Philly, they don't have to pay you anything- that first trip from home and the last trip to home are considered your "commute". If they're going to reimburse you, it'll likely be at the standard IRS rate which I believe is still 55 cents/mile.
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Old 09-03-2009, 11:15 AM
 
Location: Ocean County
1,057 posts, read 1,918,958 times
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Quote:
Originally Posted by luckyshoes View Post
yes, the IRS sets it. looks like it's 55 cents per mile.

IRS Announces 2009 Standard Mileage Rates
That's the rate. BUT: The company is under no obligation pay employees anything for travel/mileage. The IRS rate is simply the maximum rate per mile at which the company can deduct from its tax returns if it chooses to reimburse employees.
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Old 09-03-2009, 12:09 PM
 
Location: NJ & NV
5,773 posts, read 16,588,795 times
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Also if I understand it correctly, the 55 cents IRS figure, is, if they pay you less, say 40 cents/mile you could deduct the difference 55-40=15 cents/mile on youtr taxes if you wanted to.
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Old 09-03-2009, 12:12 PM
 
1,235 posts, read 3,954,237 times
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When companies do reimburse, they usually reimburse at the IRS rate. But they don't have to reimburse. If they don't reimburse then you can deduct the 55 cents per mile on your taxes as a business expense.
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Old 09-03-2009, 12:18 PM
 
177 posts, read 700,628 times
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Quote:
Originally Posted by diddiyo View Post
Hi, just a quick question: I have to go to Philadelphia tomorrow for work. I do not have a mileage-allowance so I will get a certain amount of $$ paid for each mile. My roommate told me there's a law for what they have to pay as a minimum but I can't find anything about it.

Any help is appreciated
There is no law. Your company doesn't have to pay you for driving even one mile.
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Old 09-03-2009, 12:54 PM
 
1,977 posts, read 7,755,928 times
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My wife does this all the time for me (shes an accountant). My company only pays $0.40/mile. They have finally upped it this year from $0.25. We(she) keeps track of the mileage and we submit it on our tax return. Its probably only pennies you get back but I'll take it. There is nothing that i know of that states a company HAS to reimburse you for travel.
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Old 09-03-2009, 01:55 PM
 
Location: NJ
12,283 posts, read 35,690,922 times
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Quote:
Originally Posted by luckyshoes View Post
When companies do reimburse, they usually reimburse at the IRS rate. But they don't have to reimburse. If they don't reimburse then you can deduct the 55 cents per mile on your taxes as a business expense.
but isn't that subject to the over 2% of AGI?
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