Is an employer required to reimburse for mileage in Illinois?
Certain states – including California, Illinois and Massachusetts – do mandate that employers reimburse employees for mileage and vehicle expenses related to work. Each year, the IRS sets its mileage reimbursement rate. In 2020, the standard mileage rate is $0.575 per mile.
How to prepare for employee expense reimbursement in Illinois?
If you are an Illinois employer and you currently have a written expense reimbursement policy in place, revisit it to ensure it aligns with the amended IWPCA. If you are an Illinois employer and you do not have a written employee expense reimbursement policy in place, prepare one as soon as possible that complies with the new Illinois law.
Do you have to reimburse employees for car mileage?
There are two legal considerations to keep in mind when formulating a mileage reimbursement policy: employment law and tax law. On the federal level, there is no requirement for employers to reimburse employees for mileage when using personal vehicles for company purposes.
When did Illinois business expense reimbursement law take effect?
The governor signed the law, which took effect Jan. 1. Illinois is now the ninth jurisdiction to impose expense reimbursement requirements on employers. Under the new law, for necessary expenses to be reimbursable: The employer must have authorized or required” the employee to incur the expense.
Are there any other states that require reimbursement for employee expenses?
Though a number of other jurisdictions require employers to reimburse employee expenses (e.g., California, Washington D.C., Iowa, Massachusetts, Montana, New Hampshire, North Dakota, and South Dakota), the new Illinois expense reimbursement law is unique in its treatment of employers’ expense reimbursement policies.
When do employers have to reimburse employees in Illinois?
The new year brought a new concern for Illinois employers: a mandatory expense reimbursement law. As of January 1, 2019, Illinois employers must reimburse all “necessary expenditures” their employees incur in the scope of employment directly related to services performed by the employer.
How to calculate IRS mileage reimbursement for employees?
The reimbursement rate is the IRS standard rate of $0.575 cents per mile Compare the car’s odometer reading before and after the trip to calculate miles driven Employees must fill out an expense report for mileage reimbursement within 10 business days of the trip
Do you have to pay employees for mileage?
Do employers have to pay mileage reimbursement to employees? There is no federal requirement under the Fair Labor Standards Act for employers to reimburse employees for mileage accrued while
The governor signed the law, which took effect Jan. 1. Illinois is now the ninth jurisdiction to impose expense reimbursement requirements on employers. Under the new law, for necessary expenses to be reimbursable: The employer must have authorized or required” the employee to incur the expense.