Introducing employee mileage reimbursements in Rho

Businesses can now automate and maintain mileage reimbursement compliance in seconds.
Author
Shannen Balogh
Product Marketing Manager
Published
February 13, 2024
read time
1 minute
Reviewed by
Updated
March 10, 2024

When employees use their personal vehicles for business-related purposes, employers can offer a per-mile reimbursement policy to account for costs like gas, insurance, and maintenance of their vehicles. 

Today, we’re excited to announce that businesses running on Rho can now manage and administer employee mileage reimbursements with ease. 

Read on to learn more about how this capability can save finance teams hours. 

Automate and enforce your expense policy with ease.

Eliminate late receipt submissions and streamline transaction reconciliation with Rho.

––
rating

Feature spotlight: Employee mileage reimbursements in Rho

Last year, we rolled out the ability for customers to reimburse their employees with Rho. Today’s announcement builds on that momentum, adding mileage reimbursements as an option based on feedback from customers running on Rho. 

Here’s how it works. 

  1. Businesses set their standard reimbursement rate, which defaults to the current year’s Internal Revenue Service (IRS) rate of $0.67/mile.
  2. Employees can then submit trip details in the Rho App, which automatically calculates the distance between stops. 
  3. The reimbursement amount is calculated, and employees are prompted to submit any other details – like notes or client IDs – required by the business’ expense policies
  4. Once approved, employees are reimbursed directly to their bank accounts via ACH

By automating distance calculations and giving employees an easy way to submit on-the-go, managers and finance teams are saved from reviewing manual trip logs or other time-consuming methods to verify reimbursable business mileage. 

Why businesses offer employee mileage reimbursements

Some businesses offer mileage reimbursements as a workplace benefit to attract talent; others do so because it is a legal requirement in some states, like Illinois, California, and Massachusetts.

Note: Commutes to and from your workplace do not qualify for mileage reimbursement; claims are typically reserved for activities like traveling to conferences, offsite customer meetings, and supply stores. Check with your employer to learn about your company’s specific policy. 

The administrative challenge with mileage reimbursements

It is critical for businesses to outline all expense and reimbursement rules in a centralized expense policy to effectively manage spending and employee refund requests. 

However, expense policy administration and enforcement can require significant time and attention from busy finance teams managing the process, especially if it is handled manually.

Reimbursements are particularly challenging. They may need more stringent policies than standard business expenses purchased with a corporate card. Detailed notes, documentation (if applicable), and approvals can help avoid potential misuse. 

Simplify employee mileage reimbursement with Rho today

Today’s announcement is another milestone in our journey to help make finance frictionless for organizations. 

The new employee mileage reimbursement capability in Rho is designed to help administer and manage what can be a time-intensive, manual process for finance teams that keeps them from more strategic work. 

Are you a business interested in learning how Rho can help streamline your spend management, boost your bottom line, and save significant hours of administrative time? Sign up to get started with Rho today. 

Need help drafting an expense policy? Check out our easy-to-use guide today. 

Product FAQ: Mileage reimbursements in Rho

Here are a few common questions we receive about Rho's reimbursement capabilities.

How do I enable mileage reimbursements in Rho? 

Admins can navigate to the Settings tab in Expenses, toggle Reimbursements on, and then enable Mileage Reimbursements. Then, admins can set a per-mile reimbursement rate. 

Note: The IRS standard mileage rate for 2024 is $0.67 per mile, but you are not required to limit your benefit to this amount. 

Talk to your tax professional to learn more about the mileage reimbursement rate, potential deductions, and how it may impact your business taxes. 

How do I submit mileage reimbursements in Rho?

The easiest way to submit a mileage reimbursement is via the Rho mobile app. 

To do so, open the Rho app, navigate to Expenses, then click Reimbursements. From there, you can choose a standard or mileage-specific reimbursement. 

Name the trip, add a date, and enter your Starting Point, up to 3 stops, and your Ending Point. That’s all you need to add – Rho will then automatically calculate your reimbursement amount based on the per-mile rate your company offers and the total miles of your trip. 

Note: There is an option to manually enter the mileage for your trip instead of using the built-in map-based calculator. 

Once you submit the request, you might be prompted to add additional details depending on your company’s expense policies. 

Not using the app? You can also submit mileage reimbursement requests on your desktop by logging into bank.rho.co. 

How do employees get reimbursed? 

All reimbursement requests get reviewed within Rho. Once they’re approved, employees are reimbursed to your bank account. 

Note: the first time an employee submits a reimbursement request in Rho either on the mobile app or on web, they’ll be prompted to add their bank account details for payment.

Related Posts

Join thousands of top business leaders today.

No personal guarantee or personal credit check required.
Rho is a fintech company, not a bank. Checking and card services provided by Webster Bank, N.A., member FDIC; savings account services provided by American Deposit Management, LLC and its partner banks.