Mileage reimbursement claim denied - wrongfully?

Question

My company has East & West coast plants. I work east. We rotate a pager weekly for after hours parts calls & are paid $250 extra/week. We sometimes drive in to get a part. I asked one of my more experienced co-workers if I can claim mileage too. They said yes but it is limited to distance between home & plant. I submitted mileage & my manager rejected claiming mileage is included in the $250.00. I later asked a west manager & they said that it is not in the $250. I asked them about home to plant distance limit & they said it is up to what my manager feels is reasonable. My paycheck is $250.00 higher on pager weeks and is taxed accordingly. I told my manager they can’t tax mileage pay and he didn’t bend, he told me that he was not going to tell me how to do my taxes. What should I claim on income tax? Should I go back and ask them to minus out mileage & correct the overtax for mileage expense? Has something illegal occurred? Can some one please give me some clarity here?!

Answer 1

You obviously need to talk w/ the HR people to see all of this in writing. Then you will know whether or not you've got a claim.

I'm betting that your company's policy is hampered by American (you're in the USA, right?) IRS policy, which would not allow for mileage to be paid tax-free for the commute to work and back. The company simply expects you to make the drive.

Again, obviously, you need to have this policy clarified, because someone here is messing up, and hard feelings are sure to follow.

Answer 2

IRS does not allow for mileage expense from work to home and back. If the contract you originally signed when you started with your company states that you get $250 and no mileage, then that's the way it is. Each employee can have different compensation - your co-worker could get $500 for pager weeks if that's what he negotiated.