How to Ask Your Boss for Gas Compensation (2024)

If you use your car on the job, driving costs can add up. Employees used to be able to take a mileage write-off if they itemized deductions on their tax returns, but that's no longer true. Your boss may be willing to reimburse you if you show how much it costs. Even if they're not willing, under some circ*mstances it may be mandatory.

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Research the law: if it covers your situation, your employer is obligated to reimburse you. If not, you'll have approach your boss about reimbursem*nt or bite the bullet and keep paying out of pocket.

Driver Reimbursem*nt: What The Law Says

It makes good sense for employers to offer reimbursem*nts for business travel, Company Mileage says. It's a legitimate business expense so if they reimburse you ​$125​ for the current month's driving they can claim a ​$125​ write-off. All that's required is that you keep records so that they can show the IRS the money was a reimbursem*nt for work expenses, not extra pay.

The reimbursem*nt has to be at the current IRS per-mile rate. It's perfectly legal to offer more, Gusto says, but above the IRS rate, the money is taxable. At time of writing, the IRS has set the rate at ​$.56​ per mile.

Some states, such as California, make reimbursem*nt mandatory. It's also required if paying for gas pushes your compensation below the minimum wage. Companies that let gas or other expenses eat into your pay that much have been sued successfully.

The IRS says deductible reimbursem*nts do not cover your commute. Driving between work and home is not deductible, even if you take business calls while you drive, have the company logo on the side or carry your tools or your laptop in the back seat. Neither are any parking lot fees you pay to park at work. Your employer can reimburse you but it's taxable compensation.

Travel from the office to a job site or to a client meeting is deductible, as are any parking fees or tolls you pay. Transporting particular special equipment might qualify as business, the Gibbons Law Group says. Also, any driving you do during your work hours is work time, even if the mileage isn't. If you make a delivery or drive to meet a client, you're on the clock and should get paid.

How to Ask for Reimbursem*nt From Your Boss

If your employer makes a practice of reimbursem*nt, the process should be standardized. Ask your boss what sort of records the company wants and whom to present them to. Keep track of your driving and present your records at the end of the week, month or whatever period you're dealing with. It's a routine request that shouldn't cause any problems.

If reimbursem*nt isn't standard in your workplace, you'll have to decide if you want to raise the topic. If the company budget is tight and the mileage is only an occasional, affordable expense, The Muse says, you might want to bite the bullet. If it's a lot of driving and you're feeling the pinch, though, talk to your boss. In some cases where driving a lot is part of the job, asking for a company credit card wouldn't be unreasonable.

If state or federal law is on your side, point that out, Ask a Manager says. You don't have to be confrontational, just show the boss that your earnings have dropped to below minimum wage. If the law's not on your side, show how much you're spending on gas to drive for the company. Your boss shouldn't be outsourcing business expenses onto employees. If they're determined to do that, it may be time to think about an exit strategy.

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