Not every service company has a fleet. When technicians use their own vehicles, a simple reimbursement policy avoids disputes and keeps good people from feeling they pay to work.
In this article
When it applies
Driving between jobs, to the supply house and to the shop counts. The normal commute from home usually does not, but check how your state treats it.
Choose the rate
Many companies use the IRS standard mileage rate. Others pay a fixed car allowance. Write down which one and when it changes.
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Track the miles
Use the job software or a mileage app with start and end points for each trip. Avoid estimates written at the end of the month.
Write the policy
What counts, the rate, how to submit and when it is paid. Put it in the handbook.
Insurance
Ask technicians to keep proof of insurance and talk to your agent about coverage when employees drive for work.
Common mistakes
Paying by guess, ignoring state rules and forgetting insurance.
Price every call so it pays.
We help service businesses set clear policies, book better jobs and turn more calls into profitable work.
Frequently asked questions
Do I have to reimburse mileage?
It depends on the state and on pay. Some states require employers to reimburse necessary work expenses, and federal rules protect minimum wage. Check with your accountant or an employment attorney before choosing a policy.