Mileage Reimbursement Definition
Mileage reimbursement refers to the refund of the mileage costs associated with the use of employees’ private vehicles for business purposes.
Mileage Reimbursement Extended Definition
Employees may be required to drive their own vehicles for business trips. The expenses involved in the use of private vehicles for business-related purposes are required to be refunded to employees, under the mileage reimbursement regulation established by the IRS.
The rate set by the government can vary each year and is dependent on factors such as gasoline prices. The government mileage rate spans three categories:
- Business miles
- Use of vehicles for moving or medical purposes
- Miles driven while serving charitable organizations
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Last Updated By
Rachel Blakely-Gray | Apr 28, 2023
