Reimbursing mileages means compensating employees for using their personal vehicles to transport themselves for work-related errands. You may reimburse mileages to pay employees for driving to meet customers, or going to the bank for a business transaction, or to pick up office supplies for example. Each jurisdiction has its own rules related to the reimbursement of mileages, including maximum reimbursement rates per mile or kilometer.When a company decides to grant a higher mileage rate than the maximum amount, this will be considered “income” of the employee and be taxed that way.
What is Mileage Reimbursement?
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