Travel Policies and Mileage Expenses

May 28 2002 - The events of Sept. 11 profoundly affected business travel but did not produce many permanent changes in employers' travel policies, according to a BNA, Inc survey. Just 9 per cent of responding organizations with business travelers have modified their travel policies as a consequence of the terrorist attacks. And even fewer firms made significant changes to their policies and procedures regarding business trips.

The BNA survey shows that:

* A number of surveyed organizations have introduced new rules on travel approval, most of which require upper management to sign off on business trips.

* Several establishments have deemed business travel as optional and some others have allowed employees to avoid air travel since Sept. 11.

* Some organizations prohibit key workers from traveling together in order to minimize the risk of losing multiple employees in a travel-related disaster.

* Several businesses are scheduling teleconferences or video conferences in lieu of business trips.

Most Employers Pay Workers' Mileage Expenses

Virtually all employers (98%) surveyed by BNA compensate workers who use their own cars for business-related travel. Levels of reimbursement are not uniform across organizations but most mileage rates are clearly influenced by the IRS standard deductible for business use of a personal vehicle.

The BNA survey shows that:

* 52% of responding organizations pay their employees 36.5 cents for each mile of business travel in a personal vehicle - the IRS standard deductible for 2002.

* Two-fifths of surveyed companies pay less than the current IRS standard but most are within a few cents of the IRS deductible.

* Just one-tenth of responding organizations disregard the IRS standard in setting mileage reimbursement rates.

* 59% of surveyed HR executives reported that their firms' mileage reimbursement rate "is always identical to the IRS standard mileage rate," - but 17% actually reported mileage rates that differed from the IRS standard at the time of the survey.

Further details are contained in the full report. The survey was conducted in February and March 2002 with responses from 328 human resource and employee relations executives representing a cross section of U.S. employers, both public and private. The report also covers reimbursement for travel meals, lodging, and airport parking; restrictions on business travel arrangements; policies on "frequent flyer" miles earned during business travel; the effect of Sept. 11 on business travel policies; and reimbursement of meal costs incurred during overtime.

BNA is a leading publisher of print and electronic news and information, reporting on developments in business, labor relations, law, health care, economics, taxation, environmental protection, health and safety, and other public policy and regulatory issues. The website is at http://www.bna.com.