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How to calculate mileage reimbursement

I know that mileage reimbursement is something that is the compensation for the employees who use personal vehicles for business purposes... I used this tool https://www.easycalculation.com/other/mileage-reimbursement-calculator.php for calculating the compensation amount i will gain for the distance i travelled. One of my frnd says, that "mileage compensation is also a part for any damage or repairs that occurs in vehicles..Hence you will be paid for it also"...Is it a part of mileage compensation really......how to calculate in including these ....

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

If you use the IRS rate, it is for normal wear and tear on a vehicle, including gas. So, oil changes, brakes and tires.

If the vehicle is involved in a collision, then you have another issue. What is the company policy. What company insurance policy do you have, etc., etc.

Topic Expert
Christie Jahn
Title: CFO
Company: Prime Investments & Development
(CFO, Prime Investments & Development) |

As Wayne points out the IRS regulations account for wear and tear and if you calculate the IRS mileage rate at $.575 per mile and compare that to what it would have cost to simply pay for the gas used for those miles it adds up so much that we have started renting vehicles when the mileage reimbursement becomes higher than a car rental.

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