How your mileage reimbursement is calculated (US W-2 employees)

Last updated: September 10, 2026

Applies to: US W-2 employees of Ascen who drive their own vehicle for work and are reimbursed for mileage. If you are an independent contractor, or employed by Ascen outside the US, mileage works differently for you — email support@ascen.com before you rely on anything here.

Summary: Mileage isn't reimbursed from a receipt. You are paid a set amount per business mile you drive — miles × the mileage rate — and you calculate that dollar amount yourself when you submit it. To be reimbursed, you need a trip log showing the date, where you drove from and to, the business reason, and the miles. Submit within 30 days of the trip.

How the amount is calculated

Business miles × the mileage rate = your reimbursement.

Ascen uses the IRS standard mileage rate in effect on the date of the trip. The IRS publishes the current rates here: IRS Standard Mileage Rates. Always check that page rather than reusing a rate you remember — the rate changes, sometimes part-way through the year. For 2026 the business rate is 72.5 cents per mile for trips on or before June 30 and 76 cents per mile for trips from July 1.

Example: 48 business miles driven in September 2026 × $0.76 = $36.48.

Your agency or client may have set a different rate for your assignment — confirm with them if you are not sure which applies. Anything paid above the IRS standard rate is treated as taxable pay rather than a tax-free reimbursement.

What the rate already includes

The standard mileage rate is designed to cover the whole cost of running your car for those miles — fuel, oil, maintenance and repairs, insurance, registration, and wear and tear. So if you are being paid by the mile for your own vehicle:

Don't also submit fuel receipts for the same driving. That would pay you twice for the same cost, and the fuel claim will be declined.
Tolls and parking are separate — they are not in the rate. Submit them as their own reimbursement with receipts.

If you are driving a rental car that is being reimbursed as an actual cost, the opposite applies: the rental and its fuel are reimbursed from receipts, and you do not also claim mileage for that car.

Which miles count

Usually reimbursable, when driving is part of your work:

Driving between two worksites in the same day.
Trips your work requires — to a client site, to pick up required supplies, to a required off-site meeting or training.
If you are on a travel assignment away from home: the daily drive between your temporary lodging and the worksite, and the drive to and from the assignment at the start and end. On a genuine travel assignment this is business travel, not commuting.

Not reimbursable:

Your normal commute — driving between your home and your regular workplace. This is a personal expense, however long the drive is.
Personal trips — groceries, errands, sightseeing, or personal travel on days off, including personal miles put on a rental car.

Mileage isn't covered on every assignment. Your agency or client decides whether it is reimbursed, so it's worth confirming before you drive — see How to submit an expense or mileage reimbursement.

What you need to keep: a trip log

There is no receipt for mileage, so your log is the documentation. Without one, mileage can't be reimbursed tax-free. Record each trip as you go, not from memory at the end of the month, and keep:

The date of the trip.
Where you drove from and to — e.g. "hotel → Mercy General" and back.
The business reason — e.g. "assignment shift", "travel between worksites".
The miles driven for that trip.

A simple list is fine — a note on your phone, a spreadsheet, or a printout from a mileage app. Keep personal driving out of it. Ascen or your agency may ask to see the log before approving, so keep it somewhere you can send it.

How to submit it

There is no separate "mileage" expense type. You submit mileage as an ordinary reimbursement using the dollar amount you calculated:

Total your business miles for the period you're claiming.
Multiply by the rate that applies to those trip dates to get the dollar amount.
Create the expense in your portal, choose a travel category, enter the amount, and put the dates, route and total miles in the business purpose or description. Attach your log if you have it as a file.

Step-by-step instructions are in How to submit an expense or mileage reimbursement. On some assignments expense entry is turned off and your agency or client submits on your behalf — send them the same log.

Deadline: 30 days

Submit mileage within 30 days of the trip date. This is an Ascen requirement for US W-2 employees and it is stricter than the IRS deadline on purpose — late submissions can lose their tax-free treatment and are harder to get approved. For when the money actually lands, see When you'll be reimbursed for expenses.

Is it taxed?

Mileage reimbursed at or below the IRS standard rate, supported by a log, is not taxable income. It is paid alongside your wages but does not show up as wages on your W-2.

Two things are taxable pay rather than reimbursement: any amount paid above the IRS rate, and a flat car or driving allowance that is a set sum each period rather than a payment for miles you logged. Those are added to your taxable wages and appear on your W-2. This isn't individual tax advice — for your own situation, talk to a tax professional.

Questions

Email support@ascen.com — Ascen is your employer of record and runs the pay cycle, so we can tell you what was approved, what rate was applied, and which paycheck a reimbursement landed on. For whether mileage is covered on your assignment at all, start with your staffing agency.

How to submit an expense or mileage reimbursement
When you'll be reimbursed for expenses
Why an expense or reimbursement was declined — and when hours belong on a timesheet instead
How per diem and travel stipends work
How long can I work in the same area on travel assignments?