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Q.Do I have to reimburse my employees for their mileage? (CA)
A.YES. Pursuant to California Labor Code Section 2802, California employers are required to reimburse employees for all expenses incurred by the employee in performing their duties, including expenses for travel, dining, and mileage (other than to and from work/home).
The employee cannot agree to waive this right to receive reimbursement.
In addition, the California Labor Commissioner has stated that any employer who reimburses its employees at less than the standard IRS mileage rate will have to prove that the employee's actual expenses were in fact less than the standard IRS mileage rate, or be subject to liability for the difference.
The 2011 standard IRS mileage rate for business use of a vehicle is 51 cents per mile, up from 50.5 cents for 2010.
IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this web site is not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed on a taxpayer under the U.S. Internal Revenue Service.
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