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