Accurately defining business mileage is critical to control costs. If business mileage is not properly defined or interpreted to employees, it can have costly consequences for a company. There are three working situations that define whether business mileage is reimbursable or not. Those include: Home-Based employees, Office-Based employees or those who have a Satellite or Temporary Office. Understanding the difference is crucial to control costs and provide proper reimbursement for business travel.

For more information and IRS definition of a business mile, please see Diagram B. (Page 14) click here

EMC provides diagrams below to describe and illustrate how business mileage affects employees differently in each of the three working situations. The diagrams illustrate tax-deductible mileage (reimbursable costs) and non-tax deductible mileage (non-reimbursable costs). Through illustration, we hope to provide a more clear distinction so that employees can more accurately account for business travel. Proper reimbursement is dependent upon the specific work situation of each employee

Although the three work situations apply to most employees, there may be unique situations that do not fit. Please contact us to discuss those situations that may fall outside of the norm.

Home Based Employee (click for more)

Office Based Employee (click for more)

Satellite Office Employee (click for more)