Q: How much is an employer in Tennessee required to compensate mileage for business travel using personal vehicle?
A: You should talk to an accountant- It is my understanding Federal and Tennessee law does not require an employer to pay mileage unless as a result an hourly employee will drop below the minimum wage. A good guide is the IRS guideline on the mileage rate that can be checked on the IRS website.
Federal Requirement that you can't cut into minimum wage - so any payment would have to at least meet this.
§531.35 “Free and clear” payment; “kickbacks.”
Whether in cash or in facilities, “wages” cannot be considered to have been paid by the employer and received by the employee unless they are paid finally and unconditionally or “free and clear.” The wage requirements of the Act will not be met where the employee “kicks-back” directly or indirectly to the employer or to another person for the employer's benefit the whole or part of the wage delivered to the employee. This is true whether the “kick-back” is made in cash or in other than cash. For example, if it is a requirement of the employer that the employee must provide tools of the trade which will be used in or are specifically required for the performance of the employer's particular work, there would be a violation of the Act in any workweek when the cost of such tools purchased by the employee cuts into the minimum or overtime wages required to be paid him under the Act. See also in this connection, §531.32(c).
You should always check the IRS website for the current rate- here is information on the IRS page currently.
57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019,
17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019, and
14 cents per mile driven in service of charitable organizations.
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