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Reimburseable Mileage


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Guest rthiedke76
Posted

I am a new Benefits Manager and I am just now working on updating my firms Cafateria documents. So, naturally I have a few questions I am hoping someone can help me with.

1. If the firm reimburses mileage up to $.37 (and the IRS amount is .375, can an employee run the difference through the Cafeteria Plan?

2. Do you have to have a formal Plan document in order to operate a Cafeteria Plan?

3. Does anyone have an easy to read chart that will show employees how much they will save in taxes by deferring some of their compensation (medical and child care)?

Thanks!

Guest b2kates
Posted

1. yes

2. Section 125 of the Internal Revenue Code mandates that the plan be in writing.

Posted

You can only run through the cafeteria plan's FSA the mileage related to medical care. I also would question whether the rate for medical related mileage is .375 or even .37. Look in Pub 502 for the rate which is a different rate than that used for other mileage.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

Posted

2003 medical mileage per mile is 12 cents

2004 has been revised to 14 cents

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