Expert: Shirley McAllister, CPP, PHR - 4/30/2008

Question
I am a manager at a resturaunt and catering company. I get paid back for gas expenses that I have to pay for to take deliveries. I report mileage used and get reimbursed with current gas price.
I noticed on my first check my boss add 2.25 hours at $10.00 per hour instead of $22.50 for reimbursement. These hours were taxed like the rest of my paycheck.
Is this illegal or legal?
Isn't gas an expense she can write off?
Are there any laws that cover this?
Please help. Thanks for your time in advance.

Answer
Gas Expense reimbursement should not be counted as wages. The gas expenses should be paid through Accounts Payable.

The federal government issues a gas mileage rate for these reimbursed gas expenses for the use of your private vehicle.

Here is the ruling from the Department of Labor website:

ORIGINATING OFFICE:  Region 5

SUBJECT:  Notice – Privately Owned Automobile Mileage Reimbursement; Federal Travel Regulations, FTR Case 2008-301, Final Rule

PROGRAMS: All Programs

1.  Purpose. To transmit notice of final rule concerning the Privately Owned Automobile (POA) mileage reimbursement rate increase effective March 19, 2008.

2.  References. Federal Register, Vol. 73, No.51, March 14, 2008, pp. 13784-13785; Federal Travel Regulation (FTR), 5 U.S.C. 601, 801, 5701, 5702, 5703, 5704, 5705, 5706, 5707, 5708, 5709; 44 U.S.C. 3501; Executive Order 12866; 41 CFR 301-10.

3.  Links. This Alert is in the Regional website Resource page at: http://www.doleta.gov/regions/regionalresources/

Link to the Federal Register attachment (.pdf)

4.  Substance. The General Services Administration is amending the Federal Travel Regulation, by adjusting the mileage reimbursement rate for use of a privately owned automobile on official travel to reflect current costs of operation, as determined in cost studies conducted by the General Services Administration. The governing regulation is revised to increase the mileage allowance for the cost of operating a privately owned automobile from $0.485 to $0.505 per mile. The effective date of this amendment is March 19, 2008.

The statutes and website are referenced above so you can use it to reference to your employer.

Good luck to you.

Shirley