Who pays travel expenses?
As an employee, getting to and from home and your job is your responsibility. You should not expect your employer to reimburse you for the expenses of getting to work, and such expenses are not generally deductible when figuring your income taxes. Travel expenses while on the job are a different matter. If your employer asks you to run errands in your personal vehicle, your employer should pay travel expenses based on the miles you travel, not just pay for your gas. If your employer expects you to take your own car to shows, your employer should compensate you in the same way. (If the decision to take your own car is yours, and the employer has offered you another way to get there at the employer’s expense, you should not be compensated for taking your car.)
The standard mileage rate for employee business travel reimbursement for 2010 is 50 cents per mile. This rate is set periodically by the IRS. You can get information on the rate and the reporting requirements by searching “standard mileage rate” at www.irs.gov. Employers do not have to pay this specific mileage rate. However, if an employer pays less than the standard mileage rate, you may deduct the difference between the mileage rate your employer is paying and the standard rate as an unreimbursed employee expense when you figure your federal income taxes. If the employer pays more than the standard rate, you must include the difference as additional income on your federal income taxes.
By the way, mileage reimbursement does not eliminate the need for your employer to pay you your regular rate of pay. If you are being paid by the hour, you are still on the time clock when you are running errands, or traveling to shows, even though you are being paid a mileage rate. Whether you are being paid by the hour or on salary, any overtime rules that apply when you are working at the farm or stable also apply when you are running errands for your employer, or even when you are in your employer’s car sleeping on the way to and from a show.
If you are not being compensated fairly for your travel expenses, it is good to be aware. However, it is probably not a good idea to confront your employer about a practice that has been ongoing for some time and that may affect other employees. Wait for an opportunity to discuss this problem in the context of renegotiating your compensation package. Try to work your needs into the conversation rather than confronting the employer with an ultimatum.
Times are hard. Getting more money out of your employer may be more difficult these days.
