Travel Expenses: Is Your Mileage Adding Up?
Mar 22, 2017
Mar 22, 2017
Here at HireLevel, we all strive to go that “extra mile.” Whether it is in sales, customer service, candidate relations, client outreach, or literally driving that extra mile we strive to be a top ranked employment agency and payroll services for our clients. So how does that literal extra mile add up, and how do we as an employment agency stay in compliance?
The IRS defines travel pay as “time spent traveling during normal work hours and should be considered time worked and the employee should be compensated. Time spent in home-to-work travel by an employee in an employer-provided vehicle, or in activities performed by an employee that are incidental to the use of the vehicle for commuting, generally is not ‘hours worked’ and, therefore, does not have to be paid. This provision applies only if the travel is within the normal commuting area for the employer’s business and the use of the vehicle is subject to an agreement between the employer and the employee or the employee’s representative.”(www.irs.gov)
The current 2017 rate per mile is $0.535. There are a few principles you can apply when trying to determine if that extra mile should be compensated beyond their normal rate of pay. So when does an employer actually have to pay this to their employee? Is it actually WORKED time?
As an employment agency, we understand the importance of time paid to our candidates, especially to the millennials who are taking over the workforce. It’s extremely important for us as recruitment specialists to know the guidelines and rules to staying in compliance on employment regulations.
*Salaried employees are therefore not compensated for travel time in this case. In fact, these mostly apply only in the case of hourly employees.
And remember, since compensated travel hours are considered worked hours, they can be calculated into overtime!
With an ever growing company and multiple locations across multiple states, the miles rack up! Sometimes going the “extra mile” may cost you extra, but as they say, “You have to spend money to make money”, and sometimes going that extra mile can make all of the difference. If you have questions regarding payroll, staffing or how to stay in compliance, contact us as your partner employment agency.