A mileage reimbursement account may refer to two different things. The first is a type of account held by an employee at a business where she is employed; when she goes on qualified business trips, she might then submit a form for mileage reimbursement, and the funds will be placed into the account, which is often just a business credit card. The second type of mileage reimbursement account is set up by the business itself, and is generally an amount of funds specified by the business and designated for the purpose of reimbursing employees for business trips. This helps the business manage expenses and maintain a monthly or yearly budget.
The first type of mileage reimbursement account is one of the benefits that is often offered to employees at larger corporations. The reimbursement may cover gas expenses for using one's own car, or it may cover the costs of a rental car and the gas that was needed for the car. It may also cover plane tickets if that type of travel is required, in addition to other travel expenses such as a hotel room. Mileage reimbursement does not necessarily just refer to miles driven. These accounts are sometimes also referred to as travel reimbursement accounts.
Companies will typically either require employees to submit receipts, and will then issue a check for reimbursement, or may just give employees a corporate credit card to use, and then replace the funds in the mileage reimbursement account. Employees should be sure to keep careful track of the money that is spent and then submitted for reimbursement, and be sure that only qualified expenses are submitted. Otherwise, one may lose the privilege of accessing a mileage reimbursement account, or may be prohibited from taking business trips in the future.
The second type of mileage reimbursement account is used by businesses for broader budgeting purposes. The money is rarely placed into an actual separate account from the rest of the payroll or business expense funds, but often accounting software is used to designate the purpose of the funds in these larger accounts. A certain amount per month, or per year, may be allowable for mileage reimbursement, and if employees are going over that amount, the amount of business trips that are allowed may be reduced, or an audit may be performed to insure that the funds are being used appropriately. Keeping accounts this way also allows for easier accounting, and balancing of income and loss at the end of the year.
