Mileage Reimbursement

[aride]

I live in KY. My employer is based in MI. I travel over several states on their behalf. I am required to keep mileage and fuel expense records. I am reimbursed for fuel, but not compensated for mileage.

In 2009, I traveled more than 24K miles. At the $.55/mi allowed by the fed. govt., that's $13K. Less the $3K my employer reimbursed for fuel, leaves a dividend of $10K. My employer told me to claim it as a deduction on MY taxes. Which is fine, however, I only paid the govt. roughly $2.5K in taxes, which would lead me to believe that is all they will give back. (who could blame them)
My questions:
If the govt will only refund $2,500., can I expect my employer to pay the remaining dividend of $7,500? Or did I just get fleeced?

 

[aride]

I just found a link to the Department of Labor stating that an employee be compensated for time spent traveling, (unless in company supplied vehicle). I have not been compensated as such, ever.

My figures on this (rough numbers) are: 24K mi @ 60mi/hr= 400 hrs. X my pay rate $17.50/hr = $7,000

If they don't have to pay me for mileage, would it still be reasonable for me to request this compensation? I fear that if I do I will be fired. And though I am confident I would be able to collect unemployment for such a termination, my current benefit rate is only $180/wk, not much more than I make per day working for this company.

sorry it wouldn't allow me to post the link to the DOL.

 

[army judge]

Speak with the Labor Board for your state. Your employer's practices might not be legal.


Sent from my iPhone using Tapatalk

 

[Patricia_Young]

Not true, you can get a refund.

I assume you are a nonexempt employee?

 

[aride]

I am a non-exempt employee. But what is not true? That I can't get a full refund from the govt? Or that my employer still has to pay me for mileage?

 

[Patricia_Young]

Your employer does not have to pay mileage under your state's wage and hour laws (the only two states which have such laws are California and Massachusetts).

If you have enough itemized deductions to result in a refund, I don't know any reason you couldn't get one. Who told you you couldn't?

 

[aride]

No one told me I couldn't. However, I make that assumption based on this: Even for all that travel, I didn't make much $. I only paid around $2k in fed taxes, therefore that is all I will get back. And say goodbye to the other $5k or so... I know I will get a refund, but not for the total amount I've driven. I've been fleeced.

 

[Patricia_Young]

If you've had more withheld than your liability, you get a refund in whatever amount. If, after itemized deductions, your liability is $1K and you've had $2K withheld, you get $1K back. I suggest you see an experienced tax preparer who can advise you on the best method of calculating the business use of your vehicle to maximize your Unreimbursed Business Expenses and thus maximize your refund. And also to make sure you are keeping the best records in planning for this year.

If you can justify that the business mileage cost you an incremental $$XX, then that, minus the $.55/mile, is what you can deduct.

 

[aride]

I think you're misunderstanding. I only had $2,000 witheld for federal taxes. Therefore, I will only get $2,000 back.

IF I had $7,000 witheld, I would get $7,000.

Therefore: I will not be paid the $.55 per mile I should be.

26000 mi x $.55= $13,600. a far cry from the $2,000 I will recieve in the form of a tax refund.

 

[Patricia_Young]

OK, I agree that if you have a liability of zero and you had $2K, withheld, you would only get $2K back. mea culpa.

However, that does not change the fact that the law doesn't require mileage reimbursement AT ALL in your state. So, your statement

I will not be paid the $.55 per mile I should be.

doesn't have any legal legs.

Anything you can justify over and above what the company reimbursed you for CAN be deducted as an unreimbursed business expense subject to certain limitations (didn't I already say that?). In any case, see a tax professional.