Privately Owned Vehicle/Mileage Reimbursement Costs
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.”
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).
The mileage reimbursement rate and calculation for the US is based on the maximum rate allowed by the IRS.
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.
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.
• 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.
• 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.
