Expense Reimbursement
The 2008 standard IRS mileage rate for the business use of an automobile is 50.5 cents per mile. For updated mileage rates, see IRS website.
Most union contracts and compensation plans refer to this IRS mileage rate when outlining expense allowances. Be sure to consult bargaining agreements and compensation plans for the difference between:
- The reimbursement rate when a state-provided vehicle is not available and an employee is required to use his or her own personal automobile. For employees inside the seven-county metro area traveling more than 75 miles for a trip, the control number procedure must be followed.
- The reimbursement rate when a state-provided vehicle is offered, but is declined by the employee
The two-rate policy is still in effect, even though currently many state offices do not have state-provided cars at their disposal for state travel. Agencies that do not have motor pool cars assigned to the agency will reimburse employees at the higher rate as long as they do not have a state-provided car available. The two rates are included in most bargaining agreements and compensation plans.
Requests for reimbursement must be submitted within sixty days. After sixty days, the IRS counts it as taxable income and the taxes are withheld from the reimbursement.
