Mileage Tracking

How To Track And Reimburse Mileage In Gusto

Andjelka Prvulovic
Last update on:
April 18, 2024 2:51 AM
Published on:

Gusto is known as a widely used payroll solution across the USA. No wonder, as it comes with all the critical payroll tools, automating and streamlining the entire payroll process.

However, companies that compensate their employees for using their vehicles for business purposes have special requirements regarding payroll. They want to provide their employees with adequate reimbursement for their expenses. They need their payroll solution to guarantee accuracy and efficiency.


They often wonder about the Gusto mileage reimbursement capabilities and how this software will fit their business needs.

This article will provide you with the answers to the most common questions regarding mileage reimbursement with Gusto and a few helpful hints on making your practices more efficient and reliable.

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Everything You Need to Know About Gusto Mileage Reimbursement

If you've heard how efficient Gusto is regarding payroll but are still wondering whether it fits your needs regarding mileage reimbursement, we gathered some valuable information to help you decide.

Can Gusto Do Reimbursements? 

Companies that use Gusto for their payroll can efficiently use the software to reimburse employees for their expenses, including mileage reimbursement.

Users can set up reimbursements for their employees and contractors using their admin profile in specific Gusto plans, such as Select, Concierge, or Complete. 

If they use other plans for Gusto mileage reimbursement, payroll administrators can add one-time expenses to reimburse. They can also either approve submitted payments or decline them with a note. 

Can Gusto Track Mileage?

Gusto doesn't have its own mileage tracking feature. Still, it integrates easily with other GPS and time tracking solutions, such as Timeero. This way, clients who use Gusto can always have reliable and accurate data and ensure their entire payroll process runs smoothly. 

Clients who are still not using GPS tracking solutions can also do their mileage reimbursement with Gusto. They can enter the amount manually after calculating the sum from the odometer readings.

Does Gusto Have Geofencing? 

Gusto is primarily payroll and accountancy software. It leaves the GPS and geofencing features to tools specializing in tracking employees' mileage.

However, Gusto can easily integrate with tools such as Timeero, which offer the geofencing feature, guaranteeing seamless processes, better accuracy, and reliability of your data. 

Read our Complete Mileage Tracker Guide and learn everything about employee mileage tracking and reimbursement!

How Do I Use Gusto Mileage Reimbursement?

We've already mentioned above that there are two basic ways you can use Gusto mileage reimbursement: the manual way, which relies on mileage logs and odometer readings, and the automated method, using GPS-tracking solutions.

We will first briefly describe how you can use both options. Afterward, we will give a brief insight into both methods and their efficiency.

Gusto Mileage Reimbursement Using Paper Mileage Logs

1. Have your employees track their odometer readings on paper mileage logbooks.

2. You can calculate the mileage for each employee.

3. In Gusto, click on Run Payroll > Run Regular Payroll.

4. Select reimbursement next to the employee.

5. Enter the dollar amount for the mileage.

6. Run payroll.

Gusto Mileage Reimbursement Using GPS-tracking Solutions

1. Let your employees/team members track mileage with the Timeero app.

2. Run a report in Timeero for mileage and export it as reimbursements to Gusto.

3. Run your payroll.

Manual vs. GPS Mileage Tracking with Gusto?

As we've already established above, companies can effectively use Gusto mileage reimbursement. 

However, different models of mileage recording can affect their payroll and mileage reimbursement accuracy and the company's overall efficiency.

Manual Mileage Logging

A manual mileage logbook stands for the traditional way of logging miles. It relies on using an odometer and either a paper template or an excel timesheet. The employees use the template to enter needed data to claim their expenses.

  • Paper mileage logs

Many companies still stick to paper mileage template sheets. Everybody is familiar with their use, and there is no need for onboarding. 

The template usually includes all the required data, such as the date, time, business purpose, odometer readings, miles driven, starting location, and destination point. 

But, using mileage log templates is very unreliable, as it is highly prone to human error and can also be tempered to boost employee compensations. Not to mention that the human entries can also be illegible, complicating things even more.

Furthermore, such a method can hinder employee productivity as it requires employees to record all the business trip details manually. In some situations, it can distract employees from their primary tasks, or they can simply forget to log their miles.

In addition, when there is a need to access specific data, keep in mind that paper records are tough to locate and get damaged easily. Even when electronically archived, you can not easily search for particular entries or data you need. The audit process with paper mileage logs can be excessively long and complicated. 

  • Excel spreadsheets

Using Excel spreadsheets to track the employees' miles advances the process of recording mileage logs. 

The most significant improvement is that you can now easily search entries and don't have to worry about losing logs. Furthermore, your payroll administrators won't need to waste their time deciphering the lousy handwriting. 

However, the main difficulties of paper log templates are still present when using Excel spreadsheets. They allow for human errors, can easily be inflated, and the process is very time-consuming for your employees. 

So, when it comes to manual mileage tracking, we can conclude that the data gathered this way is often inaccurate and unreliable. And remember - your Gusto mileage reimbursement (or any other payroll software whatsoever) will be as accurate as the data you feed it with. 

The process is time-consuming for your employees who need to log their miles and the payroll administrators who need to calculate, verify, and enter all data.

GPS Mileage Tracking

To get the most out of the Gusto mileage reimbursement, combining it with the most current GPS mileage and time tracking solutions is the most effective option.

As it eliminates all the paper logs or Excel spreadsheet issues, such a tool gives you peace of mind that both your company and your employees are completely covered. 

If you choose to use Gusto mileage reimbursement with a tool like Timeero, you can rest assured that you will:

  • eliminate self-reporting and human error,
  • prevent overestimates,
  • eliminate the need for manual data entry,
  • always have accurate and reliable data you need to reimburse the expenses, 
  • be able to choose to compensate the employee for the shortest route instead of the long and scenic one,
  • have correct and adequate records for deducting taxes.

On the other hand, your employees don't need to focus on recording mileage but their primary work tasks. They can start tracking their miles with a simple click on a mobile device,

GPS mileage tracking will remove all the guesswork and pain from tracking mileage and all the uncertainties related to the payroll. ‍The path traveled is presented as a GPS breadcrumbs trail that you can easily verify. With a GPS trail path on a map, you can also tell if your employees took the shortest or the more scenic and expensive route.

who is working

Using Timeero and Gusto, you can easily synchronize data and make your payroll and mileage reimbursement seamless and automated. 

Importing employees from Timeero to Gusto and vice versa is elementary and synchronizes all the necessary employee data. Furthermore, you can easily sync both reimbursements and your teams' hours from Timeero into Gusto to be paid out quickly and accurately in an upcoming payroll.

Does the Law Require Mileage Reimbursement?

Reimbursing your employees for using their vehicles for business purposes is not required by Federal Law. However, in some states, such as Massachusetts, Illinois, and California, the state law requires compensating such expenses

You should also know that mileage reimbursement is federally required when not reimbursing employees' costs would reduce their net wages below minimum wage

In such cases, a company risks possible lawsuits and hefty financial damages. That's why it's always crucial to check the rules and regulations for your state to ensure you comply.

However, even though the law does not require it, reimbursing your employee mileage is an excellent employee retention strategy and one of the most important benefits for you to offer.

If you are already using Gusto mileage reimbursement or are considering starting, then you should strongly consider creating a mileage reimbursement policy. Such a policy will provide better clarity and transparency and support your employees in making the process efficient. 

You can read how to create such a policy in the resources section and download a mileage reimbursement policy template you can tailor to fit your needs. 

How Do I Track Mileage in Gusto?

Gusto does not come with an official mileage tracker to track mileage. However, you can use a service like Timeero to have your team members automatically track mileage and easily export it into Gusto. In addition, your employees get an app to track mileage, time, and GPS location.

With Timeero at your service, Gusto mileage reimbursement will be your favorite foolproof option.

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Andjelka Prvulovic

Andjelka is a sociologist turned digital marketer. She specializes in creating content for SaaS and software companies. When she’s not researching the most effective employee management techniques, Andjelka loves cooking, reading, and fighting for human rights.

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