What Is a Gas Allowance?

A gas allowance, as the name implies, is money which is paid back to an employee for what they spend on gas when driving to and from work or during the work day as part of their job. This allowance often varies depending on the type of job and just what the company will agree to cover. There are other things which play into this gas allowance, like mileage costs, which consist of a little extra money that pays for the wear and tear on the car. This rate varies based on where the IRS sets it every few months. More specifics about gas allowances and mileage allowances are below.

Getting Reimbursed

Most reimbursements are given based upon receipts proving you spent an exact amount of money on gasoline for your car driving to and from work. These receipts can be printed out at the gas station pump if you use a credit card or be given to you by the attendant if you pay inside with cash. They will be dated as well, showing exactly when you got the gas and that you primarily used the gas you purchased for work purposes. So make sure you keep these receipts, so you can get your allowance at the end of each week or month that the company reimburses you.

Mileage Reimbursement

Mileage for driving to and from work and driving around for work is paid based on rates set by the IRS at the beginning of every fiscal year. For example, the 2011 standard mileage rates vary based on what type of business the driving was required for. If it was standard business the mileage rate is fifty-one cents per mile driven, to cover wear and tear on the tires and brakes. For medical purposes, it is nineteen cents per mile and for charitable purposes it is fourteen cents per mile. Exact records of each trip along with odometer readings at the beginning and end of each trip must also be kept and turned in to receive reimbursement for this.