Mileage Reimbursement Policy
Policy Number: HR-003
Purpose
This policy establishes the guidelines and procedures for reimbursing employees who use their personal vehicles for authorized business-related travel on behalf of PrimeDraw Specimens. This policy applies to all employees regardless of classification or employment status.
Reimbursement Rate
Mileage reimbursement is calculated at the current IRS standard mileage rate. The rate is set annually by the Internal Revenue Service and is updated each calendar year. As of January 1, 2025, the IRS standard mileage rate for business use is:
$0.56
per mile (2025 IRS business rate)
PrimeDraw Specimens will update this rate annually to match the IRS rate. Check with HR for the current rate if you are unsure.
Eligible Travel
Mileage reimbursement is available for the following types of business-related travel:
Reimbursable Travel
- Travel from the primary work site or office to satellite locations, patient appointments, or other work sites.
- Travel between patient appointments, nursing homes, or collection sites during your assigned shift.
- Travel from your last patient appointment back to the primary work site or lab for specimen drop-off.
- Travel to required training sessions, staff meetings, or company events at locations other than your primary work site.
- Travel to pick up supplies or equipment from vendors when not available at your regular work site.
- Travel to mandatory company meetings or training off-site.
Non-Reimbursable Travel
- Commuting between your home and your primary work site or first appointment of the day.
- Commuting from your last appointment or work site back to your home at the end of the day.
- Personal errands or detours taken during work hours.
- Travel to pick up meals or personal items during breaks.
- Travel to social or non-mandatory company events.
How Mileage Is Calculated
Mileage must be calculated from point to point using a verifiable mapping tool (Google Maps, Apple Maps, Waze, or similar) that provides the shortest practical driving route. Employees must record the actual miles driven for each eligible trip.
Example Calculation
When multiple stops are part of a single trip, calculate the total mileage from the first eligible stop to the last eligible stop. Do not calculate each leg separately if the stops are part of a continuous route.
Recordkeeping Requirements
Employees must maintain accurate and contemporaneous records of all mileage for which reimbursement is claimed. Each mileage entry must include:
- Date of travel
- Starting point (address or location name)
- Destination (address or location name)
- Business purpose of the trip (e.g., patient visit, lab drop-off)
- Total miles driven for the trip
- Supporting documentation (screenshot of map route, odometer reading, or GPS log)
Incomplete or undocumented mileage entries will not be reimbursed. Retroactive mileage claims submitted more than 30 days after the travel date will not be accepted without prior written approval from management.
Submission & Payment
Complete the Mileage Reimbursement Form
Submit through the employee portal under HR Support → Mileage Reimbursement. Include all trip details and supporting documentation.
Supervisor Review
Your direct supervisor reviews and approves the mileage log. Supervisors verify that claimed mileage aligns with scheduled appointments and assignments.
HR Processing
Approved mileage forms are forwarded to HR for processing. HR verifies rate compliance and enters reimbursement into payroll.
Payment
Approved mileage reimbursements are paid on the next scheduled payday via direct deposit through Gusto. Mileage is listed as a separate line item on your pay stub and is not subject to income tax withholding.
Vehicle Requirements & Insurance
- Employees must maintain a valid driver's license.
- Personal vehicles used for business travel must be covered by current auto insurance meeting or exceeding state minimum requirements.
- Proof of insurance must be on file with HR and updated at each renewal.
- Vehicles must be in safe operating condition.
- PrimeDraw Specimens' commercial auto insurance is excess over the employee's personal auto policy for business-related travel. The employee's personal auto insurance is primary.
- Employees must report any traffic accidents, citations, or license suspensions occurring during business travel to their supervisor within 24 hours.
Compliance & Auditing
All mileage reimbursement requests are subject to audit. Employees must retain supporting documentation (maps, logs, odometer records) for a minimum of 3 years from the date of reimbursement.
Falsification of mileage records, including inflating distances, claiming non-reimbursable trips, or submitting duplicate claims, is a violation of company policy and may result in disciplinary action up to and including immediate termination.
The company reserves the right to deny reimbursement for mileage that does not comply with this policy or is not supported by adequate documentation.
PrimeDraw Specimens reserves the right to modify, amend, or terminate this policy at any time with or without notice. Any changes to the per-mile rate will follow IRS adjustments.
Tax Information
Mileage reimbursements made under an accountable plan (i.e., properly documented and approved business mileage) are not considered taxable income and are not reported on your W-2. Reimbursements that do not meet accountable plan requirements may be subject to income and payroll taxes.
Employees who receive mileage reimbursement from PrimeDraw Specimens may not also claim the same mileage as a deduction on their personal income tax return. Consult your tax advisor for questions about your individual tax situation.
Employee Acknowledgement
I acknowledge that I have received, read, and understand the PrimeDraw Specimens Mileage Reimbursement Policy. I agree to comply with all requirements outlined in this policy, including accurate recordkeeping, timely submission, and maintaining required insurance coverage on my personal vehicle.
Employee Name (Print)
Employee Signature
Date
Supervisor Signature
Date