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8 min · 2026-07-02

Mileage Reimbursement: Definition & Employer Obligations

Mileage reimbursement pays employees for business use of personal vehicles — typically cents-per-mile under accountable plans with GPS substantiation.

Definition

Mileage reimbursement compensates employees for business miles driven in personal vehicles — distinct from company fleet fuel cards.

Methods

CPM (IRS rate) · FAVR · actual expense · car allowance (with compliance caveats)

States requiring reimbursement · [CPM software](/blog/cents-per-mile-reimbursement-software-enterprise/)

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