My Company only Pays $.25 for mile reimbursement for work when the IRS Standard is $.50. Is this legal?

Question

My Company only Pays $.25 per mile reimbursement for work when the IRS Standard is atleast $.50. Is this legal? Does anyone have any information on this? I live in Las Vegas, Nevada.

Answer 1

CA is the ONLY state that requires reimbursement for private vehicle use for work, they are doing more than the state of NV requires

Answer 2

Sure it is. The company doesn't have to reimburse you at ALL. The 50 cents is what the IRS allows for a tax deduction, and doesn't require the company to reimburse at all or at the same rate.

Answer 3

What would be illegal here? They don't *have to* pay you anything for travel expenses, but if they paid nothing then nobody would take the job. So yeah, they'll cut costs if they have to by paying as little as possible. The IRS is run with tax revenue like any other government service, and governments are generally pretty kind to their employees. It's possible that the government workers are backed by a union who negotiates things like transportation reimbursement for them.



Go work for the IRS instead.

Answer 4

IRS standard for 2011 is 55.5 cents per mile

employer can pay you whatever they want - no law says they have to pay you anything

file out a 2106 form and subtract what you get paid and see if you can deduct the difference