Commuting

Have a mobile workforce? You may be losing thousands of dollars in home commute costs.

Last Updated: December 26, 2017

Did you know you could be losing thousands of dollars every year (and be in violation of IRS compliance) paying employees for home commute miles to and from their home to your place of business? Typically, home to work commutes are not tax deductible. Even for home healthcare worker workers, salespeople, or other home to office commuting jobs.

The IRS considers commuting costs as a personal expense which is non-deductible. In addition, most mobile employees mistakenly track their miles from the moment they leave their home to their first work location and then back home at the end of the day. Confusing business miles and home commute miles can cost your company hundreds or even thousands of dollars.

If your office is paying out for commuting miles, you may be wasting money and time. Rather than auditing your employees for each expense, mistakenly paying out money to employees, and risking an IRS audit, you can automatically track the distance from an employee home to their offices and remove those miles from expense reports. Thus, saving you time and providing proof of the expenses you deduct.

CompanyMileage’s reimbursement solution helps companies properly manage employees drive to work. By removing the home commute expense from report calculations (ie miles to drive to/from work), you can save hundreds or thousands of dollars each year. The table below demonstrates this scenario:

Distance from home to office 10 miles
Average number of work days/year 250
Total commute miles to work 2,500
Total commute miles from work 2,500
Total potential miles 5,000
Mileage reimbursement rate $.50
Savings range per year $2,500

 

How does our system manage the home commute expense? Our solution automatically tracks the distance from an employee to their office (if the employee has a home office we have solutions for this too). When a trip is posted to or from their home we automatically deduct that mileage.

See the screenshot below.

Home commute example

It’s that easy! Contact us today to start saving on your mileage reimbursement program.

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The CompanyMileage Team

Written by The CompanyMileage Team

Marketing

CompanyMileage helps hundreds of organizations across multiple industries effectively manage the cost of reimbursing employee mileage expenses through it's mileage and expense management software solutions.

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