To Track or Not To Track: How Mileage Rate Affects Employers

Keeping track of employees’ expenses can sure get expensive. Read on to learn how to cut costs for unnecessary travel.

Last week, the Internal Revenue Service increased the tax-deductible mileage rate for workers using private vehicles for business purposes. Effective tomorrow, July 1st, employees can now claim 55.5 cents for each mile driven for work. The move is also intended to encourage employers to reimburse workers for business-related gas expenses. Reimbursement can be a hassle – so how do you ensure that your workers not only tell the truth on their time sheets but also make the most of their time in the field?

Improve routing and dispatching with better planning. Tracking company vehicles requires a small investment that quickly pays off. GPS tracking allows you to see, in real-time, your workers’ exact location and driving speed, as well as drive history. By simply paying more attention to your employees’ driving habits, you can save a lot of expense.

Would you rather reimburse your employees for driving their own vehicles – and risk losing money due to inaccurate reporting information – or invest in company vehicles and start-up equipment that will ultimately save you money and aggravation? Leave a comment to weigh in on the topic.

Enjoy the holiday weekend and drive safe and smart with FoxTrax!