Difference between revisions of "Privately Owned Vehicle/Mileage Reimbursement Costs"

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Mileage is reimbursable when a personal vehicle is used in the conduct of company business.  Commuting expenses are not considered company business expenses, but are the personal expenses of an employee.  Commuting expenses are defined as the mileage between the employee’s residence and his/her “assigned work site.”  
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Mileage is reimbursable when a personal vehicle is used in the conduct of company business.  Commuting expenses are not considered company business expenses, but are the personal expenses of an employee.  Commuting expenses are defined as the mileage between the employee’s residence and his/her “assigned work site.” Privately owned vehicle mileage reimbursement costs are allowable costs, to the extent they are reasonable.
  
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If the employee’s “assigned work site” is greater than 25 miles one-way (or 50 miles round trip) from his/her assigned Granato Group office, the mileage in excess of the employee’s commute from his/her residence to the assigned Granato Group office is reimbursable. Incremental mileage incurred after the normal commuting distance is also reimbursable (unless the mileage is incurred for personal reasons).  
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==Mileage Reimbursement Rates==
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There are two mileage reimbursement rates that businesses use in reimbursing for mileage.  They are the Internal Revenue Service (IRS) and General Services Administration (GSA).  The IRS rate is what is used for business purposes, and the GSA rate is what is allowable for US Government contracting.  Normally, the rates are the same, but if the GSA is lower than the IRS rate, then the difference between the two would be deemed unallowable for US Government cost reimbursement.  
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===Internal Revenue Service<ref>http://www.irs.gov/publications/p463/ch04.html#en_US_2012_publink100033935</ref>===
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The mileage reimbursement rate and calculation for the US is based on the maximum rate allowed by the IRS. The rates are as follows:
  
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The mileage reimbursement rate and calculation for the US is based on the maximum rate allowed by the IRS.  
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{| class="wikitable"
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|-
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! ----Date---- !!    --Amount--
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|-
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| July 2011 || $.55
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|-
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| 2012 || $.55<ref>http://www.irs.gov/publications/p463/ch04.html#en_US_2012_publink100033935</ref>
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|-
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| 2013 || $.565<ref>http://www.irs.gov/uac/2013-Standard-Mileage-Rates-Up-1-Cent-per-Mile-for-Business,-Medical-and-Moving</ref>
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|-
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| 2015|| $.575<ref>http://www.irs.gov/uac/Newsroom/New-Standard-Mileage-Rates-Now-Available;-Business-Rate-to-Rise-in-2015</ref>
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|}
  
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Exceptions – Total actual round-trip mileage from one's residence may be charged when traveling for valid business reasons: 1) on weekends or holidays or 2) to and from local airports or train stations when using one's personal vehicle in lieu of a taxi or other form of ground transportation.
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===Mileage Rate Lookup===
  
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Carpooling is encouraged if possible - The driver should claim the mileage expense reimbursement. The other carpool members are not entitled to any reimbursement. Those expenses related to normal commuting distances are not reimbursable, nor are claims for unsubstantiated local mileage. The mileage reimbursement rate is inclusive of fuel, insurance and repairs, and therefore no additional expenses related to operating a personal vehicle are reimbursable.
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https://www.irs.gov/uac/Newsroom/New-Standard-Mileage-Rates-Now-Available;-Business-Rate-to-Rise-in-2015
  
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• Expense Reporting Guidance – Mileage amounts claimed and the destination must be documented as “Mileage” expense. Bridge and highway tolls, other than those incurred in the normal commute, are reimbursable and are reported as “Ground Trans Excl Mileage.” Mileage, parking and tolls incurred for a specific client project (including excess commuting expenses incurred on temporary assignments) are charged directly to the project.
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===GSA Rate===
  
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• Allowable/Unallowable FAR Guidance - Mileage is classified as an allowable cost. If the contract does not allow reimbursement of local travel, excess commuting expenses should be charged to the “Mileage” and/or “Ground Trans Excl Mileage” expense type and classified as unallowable.
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{| class="wikitable"
 +
|-
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! ----Date---- !! --Amount--
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|-
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| 1-1-2011 || $.51 
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|-
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|4-17-2012|| $.555<ref>http://www.gsa.gov/portal/content/103969</ref>
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|-
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|1-1-2013|| $.565<ref>http://www.gsa.gov/portal/content/100715?utm_source=OGP&utm_medium=print-radio&utm_term=mileage&utm_campaign=shortcuts</ref>
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|-
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| 2015||$.575<ref>http://www.gsa.gov/portal/content/100715</ref>
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|}
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==References and Notes==
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<References/>
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==Resources and Links==
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===The Defense Travel Management Office===
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The Defense Travel Management Office (DTMO) is a useful resource for travelers. There is a section for Travel Regulations and Allowances which gives rates and allowances including JFTR and JTR, sections for allowance tables, Continental United States (CONUS) Cost of Living Allowance (COLA) and Overseas COLA, travel tools among much useful information.
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http://www.defensetravel.dod.mil/
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===U.S. General Services Administration (GSA)===
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GSA establishes Per Diem Rates for CONUS travel.  GSA provides a tool that a traveler can perform a search by city and state, or zip code of the city they are traveling.
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http://www.gsa.gov/portal/content/104877?utm_source=OGP&utm_medium=print-radio&utm_term=perdiem&utm_campaign=shortcuts
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===Internal Revenue Service (IRS)===
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The IRS website will provide the rates for tax purposes of POV mileage.
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http://www.irs.gov 
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[[Category:Travel]]

Latest revision as of 11:52, 11 April 2016

Mileage is reimbursable when a personal vehicle is used in the conduct of company business. Commuting expenses are not considered company business expenses, but are the personal expenses of an employee. Commuting expenses are defined as the mileage between the employee’s residence and his/her “assigned work site.” Privately owned vehicle mileage reimbursement costs are allowable costs, to the extent they are reasonable.

Contents

Mileage Reimbursement Rates

There are two mileage reimbursement rates that businesses use in reimbursing for mileage. They are the Internal Revenue Service (IRS) and General Services Administration (GSA). The IRS rate is what is used for business purposes, and the GSA rate is what is allowable for US Government contracting. Normally, the rates are the same, but if the GSA is lower than the IRS rate, then the difference between the two would be deemed unallowable for US Government cost reimbursement.

Internal Revenue Service[1]

The mileage reimbursement rate and calculation for the US is based on the maximum rate allowed by the IRS. The rates are as follows:

----Date---- --Amount--
July 2011 $.55
2012 $.55[2]
2013 $.565[3]
2015 $.575[4]

Mileage Rate Lookup

https://www.irs.gov/uac/Newsroom/New-Standard-Mileage-Rates-Now-Available;-Business-Rate-to-Rise-in-2015

GSA Rate

----Date---- --Amount--
1-1-2011 $.51
4-17-2012 $.555[5]
1-1-2013 $.565[6]
2015 $.575[7]

References and Notes

  1. ↑ http://www.irs.gov/publications/p463/ch04.html#en_US_2012_publink100033935
  2. ↑ http://www.irs.gov/publications/p463/ch04.html#en_US_2012_publink100033935
  3. ↑ http://www.irs.gov/uac/2013-Standard-Mileage-Rates-Up-1-Cent-per-Mile-for-Business,-Medical-and-Moving
  4. ↑ http://www.irs.gov/uac/Newsroom/New-Standard-Mileage-Rates-Now-Available;-Business-Rate-to-Rise-in-2015
  5. ↑ http://www.gsa.gov/portal/content/103969
  6. ↑ http://www.gsa.gov/portal/content/100715?utm_source=OGP&utm_medium=print-radio&utm_term=mileage&utm_campaign=shortcuts
  7. ↑ http://www.gsa.gov/portal/content/100715

Resources and Links

The Defense Travel Management Office

The Defense Travel Management Office (DTMO) is a useful resource for travelers. There is a section for Travel Regulations and Allowances which gives rates and allowances including JFTR and JTR, sections for allowance tables, Continental United States (CONUS) Cost of Living Allowance (COLA) and Overseas COLA, travel tools among much useful information. http://www.defensetravel.dod.mil/

U.S. General Services Administration (GSA)

GSA establishes Per Diem Rates for CONUS travel. GSA provides a tool that a traveler can perform a search by city and state, or zip code of the city they are traveling. http://www.gsa.gov/portal/content/104877?utm_source=OGP&utm_medium=print-radio&utm_term=perdiem&utm_campaign=shortcuts

Internal Revenue Service (IRS)

The IRS website will provide the rates for tax purposes of POV mileage.

http://www.irs.gov

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