If I work for a company that provides us our car, is there a law or guidance on a reasonable commute to charge?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I work for a company that provides us our car, is there a law or guidance on a reasonable commute to charge?
They have us provide work mileage vs personal and then we pay a tax on the personal mileage. However, they are saying that the first ride in the morning from the house/hotel to the store and the last ride from the store to the house/hotel we pay that mileage. However, sometimes that can be 200-300 miles.
Asked on October 24, 2015 under Employment Labor Law, Illinois
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
First, bear in mind that your employer does not need to reimburse or provide compensation for *any* use of your car--they are entitled to make you absorb all travel costs. Since it is voluntary on the employer's part to provide any compensation, they can decide what to pay and what not to pay.
Second, in terms of what you can take a tax benefit for (which is also used by many employers as a guide to what they would reimburse), the commute to and from work is not deductible--it is regarded as a personal expense which the employee must bear fully him/herself. So the trip from home to work, or work to home, is not deductible, and therefore very few employers provide compensation for it.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.