Employee Mileage Reimbursements
What this means to you:
Contemporaneous means; you may not reconstruct mileage logs after the fact. Therefore, you may want to require logs each time an employee returns a vehicle or returns from a trip or at least require reports on a weekly basis. The IRS has denied companies the whole automobile expense deduction, and the courts have sided with the IRS in this matter, when the contemporaneous documentation did not exist.
You may reimburse the employee at any rate up to the Federal limit, which is currently $0.55 per mile, however any amount in excess of that becomes taxable income to the employee and must be reported on their W2.