Mileage Reimbursement. Mileage reimbursement is a form of compensation businesses provide their employees for using personal vehicles at work. Mileage reimbursement covers the cost of fuel, gas, oil, tires, maintenance and repairs, insurance, and vehicle depreciation.
Each year, the internal revenue service (irs) sets a standard mileage reimbursement rate so contractors, employees, and. An effective policy is the cornerstone of any mileage reimbursement scheme.