Tracking Work Travel: Calculating Miles For Reimbursement

There are many ways to calculate miles travelled for work, depending on the mode of transport and whether you are looking to calculate reimbursable miles or just the distance travelled. For flights, you can use a Travel Calculator to calculate the miles you will earn on a planned trip or existing booking. You can also calculate the miles between airports. For car journeys, you can use a mileage calculator to determine the travel distance in miles and time taken to travel between two locations. You can also calculate the percentage of miles driven for business by dividing the business miles by the total miles.

Calculating reimbursable work mileage

When it comes to reimbursing employees for work-related travel, it's important to have a clear and consistent approach. There are a few different methods and scenarios to consider, so here is a step-by-step guide to calculating reimbursable work mileage.

Understanding the Basics

Firstly, it's important to note that mileage or transportation expenses between an employee's home and primary work location are generally non-reimbursable. This applies regardless of whether it's a normal or non-normal workday.

When employees use their personal vehicles for work-related travel, they are typically reimbursed based on the distance travelled. This is usually calculated using a standard mileage rate, such as the IRS standard mileage rate in the United States. For example, if the standard IRS mileage rate for a particular year is 67 cents per mile, and an employee drives 200 miles for business, the reimbursement amount would be calculated as follows:

Reimbursement amount = miles × rate

Reimbursement amount = 200 miles × $0.67 = $134.00

Company-Provided Vehicles

When employees use a company-provided vehicle, the calculation may differ. In this case, depreciation is not a factor, and the reimbursement rate is typically lower. For example, a company may set a rate of 25 cents per mile for company-provided vehicles. Using the same example as above, the reimbursement calculation would be:

Reimbursement amount = miles × rate

Reimbursement amount = 200 miles × $0.25 = $50.00

Commuting to Off-Site Locations

When employees commute to sites other than their primary work location, the reimbursable mileage is calculated by totalling the miles driven for the day and then subtracting the usual commute distance between their home and primary work location. This can vary depending on whether the trip starts and ends at home or the office. If the trip starts and ends at home, the normal round-trip commute distance is deducted. If it starts or ends at the office, a one-way commute deduction is typically applied.

Ground Transportation and Air Travel

For ground transportation to off-site events or locations, employees may be reimbursed based on mileage and parking expenses. In some cases, ground transportation costs may be limited to the amount reimbursable for using a personal vehicle.

When it comes to air travel, reimbursable miles are calculated based on the segments of the trip. For example, if an employee travels from home to the airport and back, the reimbursable miles would be the distance from home to the airport and back, minus their normal round-trip commute. If they travel from the office to the airport, the reimbursable miles would be the distance from the office to the airport, minus a one-way commute.

Combining Business and Personal Use

In situations where employees use their vehicle for both business and personal purposes, it's essential to differentiate the mileage. This allows for accurate calculations when claiming depreciation and other vehicle-related costs. To calculate the percentage of business mileage, divide the business miles by the total miles driven. Then, multiply the business miles by the standard mileage rate to determine the reimbursement amount.

By following these steps and considerations, businesses can effectively calculate reimbursable work mileage for their employees, ensuring accurate and fair compensation for work-related travel.

Using a mileage calculator

Driving

If you're using your car for work, you can use a mileage calculator to work out how many miles you've travelled and, if necessary, how much you can claim back in expenses. For example, the University of Colorado uses the Concur Travel & Expense System, which provides an online map to calculate the number of miles driven. It also helps calculate and deduct your normal commute.

There are also mileage-tracking apps, such as TripLog, which can save you time and effort by tracking, calculating, and reporting your mileage.

Flying

If you're flying, you can use a travel calculator to work out how many miles you'll be travelling. Some calculators, such as the Miles & More Travel Calculator, can also tell you how many points you'll earn on your trip. You can use this calculator before or after booking your flight, and it works for both direct and connecting flights.

Air Miles

If you're interested in calculating air miles between two locations, you can use a calculator such as Air Miles Calculator. This will tell you the distance between two airports, as well as providing a map, estimated flight time, time difference between cities, and estimated CO2 emissions.

Tracking business vs personal mileage

Tracking business versus personal mileage is essential for tax purposes, reimbursing employees, and keeping accurate financial records. Here are some methods and best practices for distinguishing between the two:

Manual Tracking

Traditionally, employees have manually tracked their business mileage using paper booklets or Microsoft Excel spreadsheets. While this method is straightforward, it is prone to human error, estimation, and dishonesty. It is also time-consuming, as employees must record trip details, calculate mileage, and submit them for approval.

GPS-Based Mobile Apps

With the widespread use of mobile phones, GPS-based mileage tracking apps have become a popular choice. These apps automatically capture and record mileage data, eliminating the need for manual entry. They can also distinguish between business and personal trips, providing greater accuracy and convenience. Examples of such apps include mLog, SAP Concur Expense, and Everlance.

Integrated Expense Systems with Google Maps

Some expense systems integrate with Google Maps, allowing employees to enter a starting address, destination, and description. While this method improves accuracy compared to manual calculations, it may not account for alternative routes or real-time traffic conditions.

IRS-Compliant Mileage Logs

For tax purposes, it is essential to maintain an IRS-compliant mileage log. This requires recording mileage within a reasonable time after a trip, typically within three months. The employer, as the custodian of records, must keep these logs for five tax years after filing a tax deduction.

In conclusion, while manual tracking methods have been the norm, the shift towards GPS-based mobile apps and integrated expense systems offers greater accuracy, efficiency, and cost control. These modern approaches to tracking business versus personal mileage can save time, improve reimbursement processes, and enhance overall productivity.

Calculating reimbursement

If an employee uses their personal vehicle, the reimbursement amount is calculated by multiplying the miles travelled by the standard IRS mileage rate. For example, if an employee drove 200 miles, and the company uses the 2024 standard IRS mileage rate of 67 cents per mile, the reimbursement would be calculated as follows:

200 miles x $0.67 = $134

However, if an employee uses a company vehicle, the calculation is different. Since the employee doesn't need to worry about the vehicle's depreciation, the company decides on a reimbursement rate. Using the previous example, if the company sets a rate of 25 cents per mile, the reimbursement would be:

200 miles x $0.25 = $50

It's important to note that the standard IRS mileage rate is not the only option for reimbursement. Companies can also implement other plans, such as a fixed and variable rate (FAVR) plan.

Additionally, if an employee uses their vehicle for both business and personal use, they need to differentiate the mileage accumulated. This is important for claiming depreciation and other operating costs. For instance, if an employee drives 300 miles for personal reasons and 100 miles for business within a given period, they can calculate the percentage of business miles by dividing business miles by total miles:

100 / 400 = 0.25, or 25%

To calculate the reimbursement, they can then multiply their total business miles by the standard IRS mileage rate:

100 miles x $0.67 = $67

To ensure compliance and accurate reimbursement, it's recommended to use a mileage tracker app or an online mileage calculator. These tools can help employees and employers keep track of mileage, calculate reimbursements, and provide proof if necessary.

When commuting to sites other than the primary work location, the reimbursement calculation may vary. If an employee begins and ends their journey at home, they would typically deduct a round-trip commute. If they begin or end at the office, a one-way commute deduction is usually applied. If the entire journey is between the office and an off-site location, no commute deduction is necessary.

Using an air miles calculator

When it comes to work-related travel, it's important to accurately calculate the miles travelled, especially for reimbursement or tax purposes. One way to do this is by using an air miles calculator, a useful tool that can help you determine the distance between two locations, specifically airports.

There are several air miles calculators available online, such as the one provided by Air Miles Calculator and WebFlyer. These tools allow you to calculate the distance between airports by using airport names, city names, or IATA/ICAO airport codes. They also provide additional information like estimated flight time, time difference between cities, and even estimated CO2 emissions. This can be particularly helpful when planning work trips or calculating travel expenses for reimbursement.

• Identify the airports you are travelling between.
• Visit a website that offers an air miles calculator, such as Air Miles Calculator or WebFlyer.
• Input the relevant information into the calculator. You can usually search by airport name, city, or IATA/ICAO airport code.
• Review the results, which will typically include the distance in miles, estimated flight time, and other useful details.

It's important to note that these calculators are specifically designed for air travel and may not account for ground transportation. If you need to calculate mileage for car travel, you may want to explore other mileage calculator options that are tailored for that purpose. These calculators often take into account factors such as traffic conditions and provide more accurate estimates for road trips.

Frequently asked questions