QUESTION
I have been paying my area supervisors $.25 a mile to travel to our different stores and offices. Should I be paying them $.55 a mile?
Asked on Jul 31st, 2012 on Business Law - Maine
More details to this question:
Or is that the amount they are to deduct on there taxes? Also, they are paid an hourly wage while driving...not sure if that makes a difference,
1 ANSWER
Reviews not shown
1 Award
You are confusing expense-reimbursement policies with tax issues. If your employees are required to account to you for their business expenses, then they do not report the amounts you pay them as reimbursement as taxable income; you tax the deduction for these payments not as wages but as travel expenses. You can pay them whatever you choose to pay and they will accept. If you pay more than the IRS rate, to which you refer, the excess will be taxable to them.
Answered on Aug 01st, 2012 at 9:32 AM