HOW DOES MILEAGE REIMBURSEMENT WORK? (In the Entertainment industry.)

Mileage Reimbursement / Photo Credit: Bruce Bisbey - Dumb Dog Productions

HOW DOES MILEAGE REIMBURSEMENT WORK? (In the Entertainment industry.)

Bruce Bisbey…please follow me at: https://dumbdogproductionsllc.blogspot.com or https://www.facebook.com/DumbDogProductionsLLC/ thank you.

HOW DOES MILEAGE REIMBURSEMENT WORK?    

Each year, in the US the IRS sets a standard mileage reimbursement rate so that contractors, employees, and employers can use them for tax purposes. This rate applies to both cars and trucks and fluctuates year by year.

Paying your team back for driving can drive anyone crazy. Well, hit the brakes on your confusion. In this overview, we’ll explain all the twists and turns of mileage reimbursement so you can decide what to do for your employees as they zip around town.

Most companies and countries use a set business rate as their holy grail while crafting their travel reimbursement policies. Do you have to follow these rates exactly? Not quite, but we’ll explain more below.

Do you have to reimburse my employees for driving their cars? 

• Possibly. You may be required to, depending on which state you live in and whether your team earns minimum wage…
• It can help you on the tax side, since reimbursements are a deductible business expense…
• It can also help keep your team happy, since they know they won’t have to dig into their own pockets for work expenses. Employee retention for the win…
• You can only reimburse your employees when they drive to and from specific work duties. That means commutes are not a part of this equation… 

What does mileage reimbursement cover?

You might be wondering where the rate amount came from. Does mileage reimbursement include gas? Does it include maintenance? The rate is based on fixed and variable costs of operating a vehicle.

Travel to a Location:

Overtime caused by travel time is computed at a rate of  time-and-one-half.

The mileage reimbursement rate for employees may include: 

• Gas…
• Standard maintenance…
• Insurance…
• Registration fees…
• Depreciation… 

How does mileage reimbursement work?

Employees must keep track of the mileage they drive for business. They might keep a pen and paper in their cars for recordkeeping.

Most businesses and shows give employees mileage reimbursement forms. These forms might ask employees the following information about their business-related drive: 

• Date…
• Business purpose…
• Origin…
• Destination…
• Miles travelled…
• Total miles… 

Typically, the forms have many lines so that employees can enter multiple trips. This means the employee doesn’t need to fill out a form per business-related trip. And, the employee receives a lump sum instead of small payments. Some employees submit the form once every few months or once a year.

You can decide when employees turn their forms into you. Create a mileage reimbursement policy, and include it in your employee handbook. You should talk about deadlines, qualifications, and exemptions in your mileage reimbursement rules.

HOW TO CALCULATE MILEAGE REIMBURSEMENT.

It’s relatively simple to calculate mileage reimbursement. Multiply the number of business miles driven by the reimbursement rate. Something like a mileage-tracking app will help you keep track of your drives.

If you drove 1,000 miles and get reimbursed .50 cents per mile, your reimbursement would be $500 (1,000 X .50 = 500). By the way, this simple formula can be tweaked based on your driving and rate of reimbursement.

How do I reimburse your team?

If you’re paying back your team, you can use expense-tracking software to pay folks every few weeks or months at the rate you choose. Set a rate, have employees enter their mileage, and calculate how much you owe them. You can then reimburse them through your payroll software. Remember, if you don’t reimburse mileage, employees can deduct it from their gross income on their taxes.

And there you have it—your playbook for mileage reimbursement. With this guide in your (mental) dashboard, you’ll be able to pay back your team, stay compliant, and keep your company moving and grooving.

Benefits of providing mileage reimbursement

Offering mileage reimbursement to employees has many benefits. You can increase employee satisfaction and even receive a tax deduction when you reimburse employees for mileage.

Mileage reimbursement is a great perk for employees. Employees who are reimbursed for their mileage will be more willing to make business-related errands. And, employees will feel fairly compensated. They don’t need to worry about accrued mileage costs when you reimburse them. If you do not reimburse employees, they might be disgruntled, which could affect employee engagement.

Current SAG-AFTRA rates (check for current rates)

Travel to an Overnight Location (no services rendered on Day of Departure):

Day Performers:

When traveling to or from the location on a day when no services are rendered, the performer shall be paid for a full day.

Weekly Performers:

There are exceptions applicable to some weekly performers. Please contact a SAG-AFTRA business representative for specific questions.

Flight Insurance:

The Producer must provide coverage of not less than $100,000 for travel by commercial airlines and $250,000 for travel by helicopter. If the producer is unable to provide such coverage, he or she is required to reimburse the performer in full the purchase price of such insurance after showing proof of purchase by the performer.

If you have a specific question about mileage reimbursement and travel or need further information, please contact a business representative at your SAG-AFTRA local office.

Sources, References & Credits: Google, Wikipedia, Wikihow, WikiBooks, Pinterest, IMDB, Linked In, Indie Wire, Film Making Stuff, Hiive, Film Daily, New York Film Academy, The Balance, Careers Hub, The Numbers, Film Maker, TV Guide Magazine, Blurb, Media Match, Quora, Creative Skill Set, Chron, Investopedia, Variety, No Film School, How Stuff Works, WGA, BBC, Daily Variety, The Film Agency, Best Sample Resume, How Stuff Works, Bright Hub, Career Trend, Producer's Code of Credits, Truity, Production Hub, Producers Guild of America, Film Connection, Variety, Wolf Crow, Get In Media, Production Beast, Sony Pictures, Warner Bros, UCAS, Frankenbite, Realty 101, Liberty Me, Careers Hub, Sokanu, Raindance, Film Connection, Cast & Crew, Entertainment Partners, My Job Search, Prospects, David Mullich, Gear Shift, Video University, Oxford Dictionaries’, Boredom Therapy, The Bold Italic, Nicholas Persac, The Guardian, Jones on art, Studio Binder, Film Tool Kit, Still Motion, Fred Ginsburg, Film Under Ground,

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Mileage Reimbursement / Photo Credit: Bruce Bisbey - Dumb Dog Productions