Legal Question in Business Law in Wisconsin

Mileage Reimbursement still 12 cents per mile for 2005! Legal?

Hello, and thank you in advance for donating your time to this service.

My husband has been employed with a sales company for 19 years which provides a monthly car allowance of $300.00 and mileage reimbursement of 12 cents per mile. Period. No Insurance, no Company car, no repair allowance and no increase in what they do pay, for the past 19 years. The one time my husband mentioned an increase, his boss told him to go out and make more sales and he'd have his increase.

Is this legal for them to do? No cost of living increase by a single cent in 19 years or more? How does the 43 cents per mile that the IRS pays come into play in this situation?


Asked on 10/21/05, 2:16 am

1 Answer from Attorneys
Mark Mahoney Cassiani Law Office, Wise Shepherd Law Office

Re: Mileage Reimbursement still 12 cents per mile for 2005! Legal?

Hello,

The employer could take away the reimbursement altogether, and your husband could decide to stay or get a different job. The amount you state from the IRS is what is allowed for tax purposes. Talk to an accountant. Your husband may be able to deduct the difference in amount per mile that he is not paid paid as an unreimbursed mileage expense.

Best wishes.

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Answered on 10/21/05, 7:36 am


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