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ADP Mileage Reimbursement: How to Submit Mileage for Reimbursement in ADP

Emily Maina
Last update on:
April 18, 2024 1:46 AM
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One of the most important parts of running a business is compensating employees for miles traveled. Reimbursement guarantees that workers who use their private vehicles for business purposes be paid for such usage. 

Robust payroll systems, such as ADP are frequently used by businesses to automate this process. You can do more with less stress since it is reliable and easy to use. 

We will take a closer look at ADP mileage reimbursement in this detailed guide, emphasizing ADP Workforce Now and ADP Run. We'll also discuss improving accuracy and streamlining the reimbursement process by integrating ADP with Timeero, a GPS and mileage-tracking app.

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Does ADP Track Mileage?

ADP doesn't have a built-in mileage tracking feature. It primarily specializes in payroll, HR, and related services. However, many companies integrate third-party mileage tracking tools with ADP to manage employee travel expenses effectively.

For automatic mileage tracking, third-party software like Timeero, easily integrates with ADP. These tools allow staff members to record their travel information, including beginning and ending points and total miles traveled. This data is then shared with ADP for use in payroll or reimbursement processes. 

Manual vs ADP Mileage Reimbursement

There are two methods you can use to track mileage while integrating with ADP.  The first option is manual tracking that relies on odometer readings. The second method is automated and utilizes GPS tracking tools.  There are a number of difficulties that arise with manual tracking, an automated solution such as Timeero will streamline the entire procedure for you. 

You can track mileage manually by:


a) Using paper mileage logs

A lot of businesses continue to use paper mileage template sheets. There is no need for onboarding because everyone is familiar with how to use them. The template typically contains all the relevant information, such as the date, time, odometer readings, miles traveled, starting location, and destination point, in addition to the trip’s purpose.

b) Using Excel spreadsheets

Using Excel spreadsheets to track employee mileage is easier than recording mileage logs. The main advantage is that you can now quickly search entries and no longer need to fret about losing logs. Also, your payroll managers won't have to spend time keeping up with paper trails. 

Still, using Excel spreadsheets presents major challenges associated with paper log formats.‍

Let's explore the challenges with manual mileage reimbursement and why automating the process is preferable:

  1. Error-prone: Manual mileage tracking is prone to human error by nature. Workers might record some trips incorrectly or forget to do so, which would lead to inaccurate reimbursement calculations. These errors impact individual employees and can create discrepancies in overall financial records.
  1. Time-consuming Data Entry: It takes time to manually enter mileage data into spreadsheets or paper forms. HR and finance teams waste hours on tedious data entry when they could be using that time for more strategic work. The sheer number of entries alone raises the possibility of mistakes and causes processing delays for reimbursements.
  1. Difficulty in Monitoring Changes: During business travel, it's usual for there to be last minute changes to plans, route modifications, or extra stops. Manual tracking systems often struggle to adapt to these changes efficiently, leading to discrepancies between recorded and actual mileage. This can create confusion during the reimbursement process.
  1. Limited Compliance Guarantee: Mileage reimbursement depends on adherence to internal policies and tax regulations. Because manual systems don't have internal checks and balances to ensure mileage claims comply with applicable tax laws, it can be difficult to assure compliance. This exposes companies to possible financial penalties and audits.
  1. Ineffective Reporting: With manual systems, generating thorough mileage expense reports for analysis or auditing needs can be labor-intensive. Due to a lack of advanced reporting options, businesses may find it challenging to extract valuable insights from the data. It could further hinder their ability to make data-driven choices.
  1. Risk of Lost Documentation: Paper-based systems are always prone to document loss or destruction. When employees need to substantiate their claims, or produce facts during audits, misplaced mileage logs or receipts can present serious difficulties. This lack of document security further complicates the reimbursement process.
  1. Scalability Issues: As businesses grow, the volume of mileage data to be tracked and reimbursed also increases. Manual processes struggle to scale efficiently, leading to bottlenecks in the workflow and a greater likelihood of errors. 

The Timeero and ADP Run CSV Integration

Timeero is a mileage tracking solution that offers seamless integration with ADP Run, enabling users to import time and mileage costs effortlessly into their ADP Run accounts. The integration is available for free and involves a straightforward setup process. 

Users need to contact their account manager and request access to activate the integration. Timeero will then enable the integration on the user's behalf.

For successful integration, users must ensure that the "Time Sheet Import" feature is turned on in their ADP accounts. This can be done by navigating to Company > Features > Overview. If assistance is needed, users can reach out to their ADP representative for guidance. 

In the Timeero portal, users need to set up their accounts for ADP Run export by adding employee IDs and hourly wages. Additionally, overtime rules should be configured under Company Settings > Payroll and Overtime, and a mileage reimbursement rate must be entered in Company Settings > General.

Premium Plan subscribers have the advantage of setting up multiple overtime rules. The standard mileage rate is a company-wide setting. Users can override this rate for specific employees by entering individual rates in their profiles. 

To export time and mileage data from Timeero to ADP Run, users can generate a report by navigating to Reports, selecting "Report by Totals Only," choosing the date range, and clicking "Generate Report." The exported data is then saved as a CSV file, which users can upload directly to their ADP accounts.

Overall, the ADP Run CSV integration streamlines the process of transferring time and mileage information between Timeero and ADP Run. It enhances efficiency for users utilizing these platforms in tandem.

Integrating Timeero With ADP Workforce Now

The integration of ADP Workforce Now with Timeero involves a one-time fee of $10 from your credit card, payable to ADP, not Timeero. The setup process varies depending on whether you already have a Timeero account or not. 

  1. Users With a Timeero Account

For existing Timeero users, administrators must verify that their Timeero email matches their ADP email. To initiate the integration, log into the ADP account, access Timeero's Integrations > ADP from the admin dashboard, copy the unique ADP company code, and click Connect. 

Users will then be directed to the Timeero Connector for ADP Workforce Now, where the purchase of the data connector can be completed by clicking "Buy Now" and following the subsequent steps.

  1. Users Without an Account

If users do not have a Timeero account, they should log into the ADP Marketplace with their credentials and search for Timeero. After selecting Timeero for ADP Workforce Now, they can review the order, agree to the Terms of Service, and follow the remaining steps to launch their Timeero account. 

Once the order is successfully placed, users will receive an email confirming the payment for the ADP connector. Additionally, administrators need to be aware that they must have Admin privileges on their ADP account to perform these integration steps. 

After successful integration, users can access the Timeero Connector for ADP Workforce Now through ADP Marketplace.

How Do I Set Up Mileage Reimbursement in ADP? 

Setting up mileage reimbursement in ADP via the Timeero integration requires multiple steps. These steps are necessary to guarantee precise mapping and synchronization of employee data and earning codes. 

Once your Timeero account is connected to ADP, log in and navigate to Integrations, then select ADP Workforce Now and go to Configuration > View Mapping. 

ADP Timeero mapping
Mapping on ADP Workforce Now.

You can then set up your employees. Under Workers, click on Sync Changes from ADP and map employees in ADP to their corresponding profiles in Timeero. This can be done quickly by selecting the desired employees and clicking Import Workers.

ADP employee settings
Setting up workers in ADP.

Earning codes play a crucial role in accurately mapping regular time, overtime, double overtime, and mileage. Timeero pulls earning codes from ADP, providing options for mapping in Timeero. 

To create a non-taxable mileage earning code in ADP, users need to follow specific steps, including creating the mileage earning code, answering "NO" to mapping it to a time & attendance pay code, and contacting the ADP representative to designate the code as non-taxable.

ADP Integrations Code Mapping
Code mapping in ADP.

Exporting hours worked, and mileage costs from Timeero to ADP Workforce Now® is also straightforward. Users can log in to Timeero, access Reports, choose the desired report type, and click Export, selecting Export to ADP Workforce Now. It only takes one click to submit, making reimbursement quick and easy. 

This process ensures that accurate data on hours worked and mileage costs is sent to ADP. Once the data is exported, users can log in to ADP Workforce Now, navigate to Process > Paydata, select the batch to approve, and review it for any inaccuracies before final approval.

It's essential to note that this integration currently does not support exporting hours or mileage separately; it exports both hours worked and mileage costs together. Following these steps ensures a smooth and accurate flow of data between Timeero and ADP for effective mileage reimbursement processes.

Benefits of Integrating Timeero With ADP

Integrating Timeero with ADP offers several benefits that streamline and enhance workforce management processes. Let's explore these advantages in detail.

GPS Mileage Tracking

To maximize your benefits, it’s wise to combine ADP mileage reimbursement with the best mileage tracking apps. This gives you the assurance that your business and employees are safeguarded since it does away with the need for labor-intensive Excel spreadsheets and paper logs. 

Mileage tracking on Timeero
Mileage tracking on Timeero

Timeero provides GPS mileage tracking,  allowing businesses to accurately record and monitor employee travel. When an employee clocks in on their smartphone app, the software starts recording mileage automatically.

This will take away all of the guesswork and uncertainty associated with payroll tracking. You can easily verify the path taken by following the GPS breadcrumbs trail. 

timeero route breadcrumb view
You can see the exact path followed using the breadcrumb trail feature.

Cost Savings

The Suggested Route feature in Timeero boosts efficiency when it comes to reimbursing mileage expenses. Employees can see a recommended path to take in order to reach their destination. Because team members will be taking the shortest routes possible, you save significantly on fuel costs. 

timeero shorterst distance
Timeero suggests the shortest possible route.

By looking at the GPS trail path, you can also determine whether your staff members chose the quicker suggested route or went for a more expensive, scenic route.

The automation and efficiency gained through integrating Timeero and ADP also contribute to cost savings. Reduced manual data entry and improved accuracy lead to lower administrative costs, resulting in a more efficient use of resources.

Tracking Additional Expenses

Employees who travel incur extra costs in addition to the fuel costs of driving from one place to another. Tolls, parking, and other unforeseen expenses are a few examples.

Integrating Timeero with ADP for expense reimbursement simplifies the management of these costs by providing a channel to keep track of them. 

Because employees have the option to attach a note or a photo of the receipt captured to their timesheet, they can make sure that the details of incurred business expenses are recorded. An admin can view the note that an employee adds to their timesheet and reimburse this while compensating for mileage or making per diem payments. 

timeero time clock mobile
Employees can add notes or attach photos on Timeero.

Prevents Mileage Fraud

With GPS tracking, Timeero helps prevent mileage fraud by providing real-time location data. The system captures detailed time and mileage information, reducing the chances of inaccurate mileage submissions that cause overbilling. 

Employers can verify that reported mileage aligns with actual travel routes. This level of verification promotes a culture of employee accountability, discouraging dishonest practices and instilling confidence in the accuracy of mileage records.

Historical Record

Timeero's Route Replay feature allows managers to replay the entire trip and retrace the exact routes taken by their field staff. Companies can use this to understand their employees' travel patterns and verify mileage. 

timeero route replay feture
Timeero’s Route Replay feature

Each timesheet also has a record of the mileage covered during that workday. In case of a reimbursement dispute, business owners can always go back to this and have foolproof evidence to protect their interests. 

Enhanced Compliance

Timeero and ADP integration helps maintain compliance with labor laws and company policies. Accurate time and mileage tracking ensures that businesses adhere to overtime, break times, and reimbursement regulations, minimizing the risk of legal issues. You can also access mileage reports on Timeero that you can use for tax purposes with the IRS. 

timeero mileage reports
Timeero provides mileage reports.

Improves Payroll Accuracy

Businesses can significantly enhance payroll accuracy by integrating Timeero's precise time and mileage data with ADP. This eliminates manual data entry by automating employee information and work-related data transfer between these two platforms. 

Timeero's account settings allow you to set a per-mile rate that gives you the total, saving you the trouble of doing extra mileage calculations. For instance you can set the rate to 67 cents per mile, which is the IRS mileage rate for 2024, and you’ll get the amount owed. It guarantees that employees are fairly compensated and contributes to efficient payroll processing.

Is Mileage Reimbursement Required by Law?

According to Federal Law you are not required to pay your workers back for using their vehicles for business-related travel. However, in Massachusetts, Illinois, and California legislation requires payment for these costs. 

While it's not mandated by federal law, paying employee mileage reimbursement is one of the most important benefits you can offer and a wonderful way to keep staff on board.

If you are contemplating adopting a mileage reimbursement policy or if you are currently utilizing ADP to reimburse mileage, you should give it some thought. Such a policy can provide your workers more clarity, transparency, and efficiency in the process. You can customize our mileage reimbursement policy template to meet your needs by downloading it. 

You might also be wondering, “How do I pay my employee for mileage?

As mentioned above, you can use the IRS rate when reimbursing for mileage. There are often many questions surrounding the use of this rate: Is regular upkeep included in this rate? Does the IRS mileage rate include gas?

Well, both the fixed and variable costs of using a car for work are factored into the IRS mileage rates calculation. This covers general wear and tear, depreciation of the vehicle, maintenance, and repairs. 

Implement ADP Mileage Reimbursement Today

In summary, integrating the Timeero mileage and time tracking app with ADP has many advantages. You can automate the reimbursement procedures and improve workforce management overall by using Timeero's automated mileage tracking features and ADP's extensive payroll and HR capabilities. 

You can easily find the Timeero Connector for ADP Workforce Now® at ADP's marketplace. This integration helps reduce costs while also guaranteeing accuracy and compliance. It's a wise decision for businesses looking to streamline processes and give employees fair compensation for work-related travel.

Our Gusto mileage reimbursement article will be a valuable asset to your company if Gusto is your payroll solution. 

FAQs

Does ADP Have a Mileage Tracker?

No, ADP does not come with a built-in mileage tracker. While ADP focuses on payroll and HR services, companies frequently incorporate Timeero for efficient mileage tracking. With these tools, employees can record their travel details, and ADP can easily integrate them for payroll or reimbursement purposes.

How Can I Submit a Mileage Reimbursement Request Through ADP?

Employees use Timeero to record their travel information which is then imported into ADP for processing. The integration ensures accuracy and efficiency in managing mileage-related expenses.

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AUTHOR
Emily Maina

Emily Maina is a tech-savvy writer with a passion for creating content. With years of experience in the industry, she is well-versed in the latest trends and developments in the tech industry. When she’s not working, Emily enjoys exploring the great outdoors or watching her favorite shows.

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