Purpose and Basis
Hogan assumes that its natural working range includes a 70-mile radius from the Hogan Centerville office. Employee commuting travel, to their job work site and home again is personal, rather than business under federal tax rules. Job sites which are further away than the IRS 70-mile radius, may be designated as per-diem jobs by Hogan and reimbursements for certain travel-related expenses may be available for employees required to travel to such job sites. Hogan expects its employees to ride share and incur double-occupancy lodging costs and has designed its reimbursement rates accordingly. Hogan has defined two ranges, based upon distance from the Centerville Hogan office, and has provided this policy for employee travel-related reimbursement within two ranges as defined herein.
Per IRS rules, travel costs for employees commuting to their jobsite and home again—if the jobsite is within a 70-mile radius from the Hogan Centerville office—is considered a personal expense, and not a business expense. No company reimbursement for such jobsite commutes is provided, with the following two exceptions:
- Within this 70-mile radius circle, Hogan may—at its sole discretion and based on business needs—designate certain jobsites for commuting-costs reimbursement if the employee lives farther than 35 miles from that specific jobsite.
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So, for example, Hogan may choose to designate a Park City-location jobsite as an exception, and assist employees commuting daily to that jobsite from their home—if they live more than 35 miles from the Park City site.
The assistance may consist of:
- Providing a group-commuter or ride-share vehicle, or
- Providing mileage reimbursement at one-half the Federal business mileage reimbursement rate
- The other exception is if the employee is using a Hogan-provided vehicle for commuting. Then costs are covered using the Hogan-provided VISA card.
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When a jobsite is farther than the 70-mile range from our Centerville office, Hogan may—at its sole discretion and based on business needs—designate a project as a per-diem job. Per-diem jobs typically require overnight travel—frequently for the entire work week—causing the employee to incur more travel costs as well as meal and lodging costs.
Employees traveling weekly to per diem jobs from home, may be reimbursed for certain travel expenses, including:
MILEAGE: Hogan will reimburse employees travel costs for mileage at a rate of one-half of the Federal business mileage reimbursement rate for travel, provided:
- The employee makes one 140-mile-or-greater round trip per week, assumed to be home to job site and return home,
- The employee travels in a personal vehicle (not a Hogan vehicle).
Optionally, Hogan may elect to provide a group-commuter or ride-share vehicle.
If the employee is using a Hogan-provided vehicle for commuting to per-diem jobs, then costs are covered using the Hogan-provided VISA card.
MEALS: Hogan will reimburse meal expenses for employees on Per Diem jobs up to $30 per day for days worked.
LODGING: If previously approved, Hogan will reimburse costs of lodging to employees on Per Diem jobs, at one-half the Federal Continental United States (“CONUS Rates”) for the jobsite area. The CONUS Rates are located at this www.gsa.gov site.
Alternatively, Hogan may provide housing near the jobsite, Hogan employees must make every effort to stay at the housing provided by the company. When housing is provided by the company employees will not be reimbursed.
NOTE: For per-diem jobsites, Hogan expects its employees to ride share and incur double occupancy lodging and has designed its reimbursement rates accordingly: one-half the CONUS or Federals rates. Payroll automatically will apply the reimbursements for per-diem jobs so no receipts are required.
Hogan’s travel expense reimbursement plan conforms with an “Accountable Plan” under the IRC because it limits personal costs, requires actual documented travel (on the payroll records as working on the job site for the time and dates), and is reimbursed at not more than the Federal Rates for such travel.
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