How to Effectively Track Mileage for Reimbursement: A Guide for Employers and Employees

How to Effectively Track Mileage for Reimbursement: A Guide for Employers and Employees

Accurate tracking of mileage for reimbursement is an important aspect of managing work-related travel expenses. This guide provides essential tips for both employers and employees on how to document and reimburse mileage effectively, in accordance with the 2023 IRS guidelines.

Key Considerations for Mileage Reimbursement:

  1. Understanding the Current IRS Rate:

    • For 2023, the IRS mileage reimbursement rate is $0.655 per mile for the use of cars, vans, or panel trucks.

  2. Determining Eligible Travel for Reimbursement:

    • Commuting between home and work is typically not reimbursable, as it's considered normal commuting time.
    • Travel from one worksite to another during the workday is eligible for reimbursement.

  3. Tracking Mileage Accurately:

    • Essential Details to Record:
      • Date of the trip.
      • Starting point and destination.
      • Purpose of the trip.
      • Vehicle's starting and ending mileage.
      • Any tolls or additional trip-related expenses.

  4. Choosing the Right Format for Mileage Logs:

    • The format (journal, account book, spreadsheet, PDFs) can vary, but consistency in tracking is key for clarity and potential audits.

  5. Record Retention Duration:

    • The IRS generally recommends keeping mileage logs for approximately 3 years.

Best Practices:

  • Consistency in Record-Keeping: Employers should establish a uniform method for mileage logging to streamline the reimbursement process and ensure accuracy.
  • Regular Submissions: Encourage employees to submit mileage logs regularly to maintain up-to-date records.
  • Audit Preparedness: Keeping detailed and organized records aids in smooth audits.

Additional Resources:

Note for Employers and Employees: Maintaining detailed travel records benefits both the employer and employee. Find a tracking system that is efficient and practical for your specific work scenarios.

For any specific questions or additional guidance on mileage reimbursement and other HR-related topics, don't hesitate to contact our team.


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