What expense category does mileage reimbursement come under?
Mileage reimbursement can come under a few different expense categories, depending on the business. For the most part, mileage reimbursement will come under the 'travel' category. However, there are a few businesses for which mileage reimbursement may come under a different category.
For Businesses with Employees Who Travel
If your business has employees who travel as part of their job, then mileage reimbursement will most likely come under the 'travel' category. This is because travel is necessary for these employees to do their job. For example, if you have sales representatives who travel to meet with clients, they will need to be reimbursed for their travel expenses.
For Businesses with Employees Who Use Their Own Vehicle for Work
If your business has employees who use their own vehicle for work, then mileage reimbursement may come under the 'vehicle' or 'transportation' category. This is because these employees are using their own vehicle to do their job. For example, if you have delivery drivers who use their own car to make deliveries, they will need to be reimbursed for their vehicle expenses.
For Businesses with Employees Who Work from Home
If your business has employees who work from home, then mileage reimbursement may come under the 'telecommuting' or 'work from home' category. This is because these employees are working from home and may need to be reimbursed for their travel expenses. For example, if you have customer service representatives who work from home and occasionally have to travel to meet with clients, they will need to be reimbursed for their travel expenses.
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