Track work trips so reimbursements are accurate and easy to review.
Suppose your policy pays $0.60 a mile, which is a made-up rate. An employee drives from the office to two client sites and back: 14 miles, 22 miles and 19 miles. That is 55 miles, and the reimbursement is 55 × $0.60 = $33.00. If the first trip was a commute from home rather than a work trip, it would not be included, so record where each trip started.
Travel from home to the regular workplace is a commute and is not reimbursed as business mileage. A trip from the office to a client, or from home straight to a client site when that is not the regular workplace, can qualify. The IRS publishes a standard mileage rate each year for tax purposes. Many employers use it as the policy rate, but it is not required, so check the current figure.
Reimbursements are usually paid with payroll but kept separate from wages on the stub. Mark the line as an expense reimbursement and total it per employee. If an employee’s wages are close to the minimum, check that unreimbursed vehicle costs do not push real pay below the minimum wage.
IRS Publication 463 lists four elements for each business trip: the amount, meaning the miles; the time, meaning the date; the place, meaning the destination; and the business purpose. A log kept at or near the time of the trip carries much more weight than one rebuilt later. Under an accountable plan, the employee should hand in the log within a reasonable time, and the IRS safe harbor treats 60 days after the trip as reasonable. Any advance above the approved amount should be returned within 120 days.
| Date | From and to | Purpose | Odometer | Miles |
|---|---|---|---|---|
| Mon 3/2 | Shop to Ridge Apartments | Boiler service, job 4410 | 41,220 to 41,238 | 18 |
| Mon 3/2 | Ridge Apartments to supplier | Pick up valve for job 4410 | 41,238 to 41,247 | 9 |
| Mon 3/2 | Supplier to shop | Return | 41,247 to 41,261 | 14 |
| Wed 3/4 | Shop to Oak Clinic | Inspection, job 4418 | 41,402 to 41,433 | 31 |
| Wed 3/4 | Oak Clinic to shop | Return | 41,433 to 41,464 | 31 |
| Week | 103 |
At a made-up policy rate of $0.65 a mile, the week comes to $66.95. The odometer jump from 41,261 to 41,402 is personal driving and is left out, which the log makes visible.
EZTime can tag hours to jobs and clients, which makes it easier to match each trip with the job it served.
Use the rate in your policy and check current official guidance.
Yes, if the records are complete.
A start and end reading is the clearest record. A mapping app’s distance with the route saved also works if your policy accepts it.
Keep them as long as your payroll or tax records, and ask your accountant for the period that applies to you.
Some employers do. A flat amount should still reflect real travel, and may be treated differently for tax.
Keep receipts or statements where possible. Tolls and parking for business trips are usually reimbursed at cost in addition to the mileage rate.
Yes, as long as it records the same four elements and can be exported for the reimbursement file.
Templates help with consistency. A time and attendance system helps you see who worked when. Book a demo to see how EZTime handles it.