How to Track and Reimburse Mileage with Paychex in 2025
Samson Kiarie
Last update on:
January 15, 2025 10:23 AM
Published on:
Paychex is a reliable payroll software application that automates human resource services (HR), employee benefits management, and payroll processing for businesses of all sizes. One of its features – Paychex mileage reimbursement – enables businesses with field teams to reimburse employees for business use of their private vehicles.
We took this feature for a spin, and in this detailed guide, we’ll tell you how it works – from tracking employee mileage to releasing money into employees' accounts. We’ll also discuss how integrating Paychex with Timeero – the best mileage tracking app – improves the accuracy of employee reimbursement.
Tired of Inaccurate Mileage Logs and Reimbursement?
Learn how Timeero makes mileage tracking a breeze.
Everything You Need to Know About Paychex Mileage Reimbursement
With Paychex Flex, you can reimburse employees for business related costs incurred while using their private vehicles through the actual expense or standard mileage rate method.
Paychex Actual Expense Reimbursement
With the actual expense method, employees submit expenses incurred during the month that are associated with operating their vehicle. Some of the costs may include:
Gasoline
Oil changes
New tire purchases
Toll and parking fees
Auto insurance
Garage rent
Employees can take pictures of the receipts and upload them to Paychex to substantiate each expense. Individual costs must be approved before the employee can be reimbursed.
The actual expense method works for freelancers, solopreneurs, and small businesses with a small workforce. For large companies, the method can be off-putting due to manual data entry and complex computation of tax claims.
Standard Mileage Rates Reimbursement
With this method, you calculate employee mileage and multiply it by the IRS standard mileage rate to get the mileage expenses. Depending on how you track employee mileage, this method may remove the need for manual data entry and simplify the tax deduction calculation.
The mileage logs must meet the Internal Revenue Service (IRS) requirements for your business to qualify for tax deduction. According to IRS guidelines, the mileage log should include:
Starting and ending points
Starting and ending times
Purpose of the trip (business, charity, medical or moving)
Mileage at the beginning and end of the trip
Does Paychex Have a Mileage Tracker?
No, Paychex doesn’t have a built-in mileage tracker. The software relies on mileage logs from third-party sources to reimburse employees. The external source may use manual or automatic tracking to compile accurate travel logs.
Manual Mileage Logs
With manual tracking, employees use pen and paper or spreadsheets – with the help of odometer readings – to log business miles.
Employees are generally given templates to record their miles traveled. When it is time to report mileage for reimbursement, all logs must be reviewed and combined together. This can be a time consuming task given the number of variables that must be tracked to create IRS compliant logs.
Managers must audit all mileage logs and compute each employee’s reimbursement manually. The manual data entry and approval process adds more work to a manager’s plate and can be overwhelming, especially with a large mobile workforce.
Manual tracking is also error-prone. If an employee forgets to record mileage, they might resort to guesswork. In some cases, employees could inflate their mileage intentionally to claim more money than they deserve, and the manager might never spot such errors.
A good case in point is Jeffery Kendrick, a former federal employee, who claimed reimbursement for 500 business trips but made 115 trips. If several employees were to make such false claims, it would significantly impact your bottom line.
Automatic Mileage Logs
Automatic Mileage logs save time by taking manual data entry out of the equation. Employees no longer have to rely on pen and paper to record their mileage and managers don’t have to spend hours trying to figure out how much compensation each employee deserves.
An automatic mileage tracker computes employee earnings on the go based on the latest IRS rates. Come the end of the month, simply generate mileage reports on the mileage tracker dashboard and export them into Paychex for reimbursement.
You also don’t have to worry about under or over-compensation - mileage logs generated by tracking apps are accurate. Each employee is fairly compensated, and the company’s profitability is protected.
Using an automatic mileage tracker, such as Timeero, is the way to go for accurate and expedient mileage reimbursement. There are more benefits to the Paychex-Timeero integration than just a smooth reimbursement process. We’ll reveal all the benefits, but first, let's see how the integration works:
How Can I Integrate Mileage Tracking with Paychex Payroll Services?
Paychex integrates seamlessly with Timeero through the Application Programming Interface (API). Once you set up the integration, you can export Timeero mileage costs directly into the Paychex account. Here’s how to integrate Paychex with Timeero:
Get Paychex and Timeero Approval
Provide your Paychex company ID to a Timeero representative and ask them to approve the integration.
Enable Access Inflex
Once the integration is approved, log in to Paychex and go to “company settings” → “Access” → “integrated apps” and enable “Access Inflex.”
Open Paychex API
Log into Timeero and select “Paychex API” under Integrations.
Connect Timeero with Paychex
Select “configuration” → “connect” and enter your Paychex Company ID. Click “connect” to start the configuration process.
Configure Mappings
Once the two solutions are connected, click on the configuration tab and select “configure Mappings.” Add the required details.
Sync Changes
Click “Sync changes from Paychex” to save the changes from Paychex.
Next, configure the Paychex CSV exporter. If you’re wondering about this configuration, fret not. We created a comprehensive guide on how to set up Timeero with Paychex CSV.
Mapping means matching a worker in Paychex to a corresponding employee profile in Timeero. It’s a vital part of the process that also entails matching the pay items such as mileage, hourly, overtime, and double-time rates.
If a worker isn’t appropriately matched or is missing on either end, they will not be included in the import/export data. Make sure to map employees after every enrollment and onboarding.
Benefits of Tracking Mileage with Timeero
Timeero automates mileage tracking, delivering many benefits, including:
Fast Onboarding With Easy to Use Apps
Improved Accuracy with Automatic Tracking
Better Employee Accountability with Segmented Tracking
Save Time with Automatic Trip Classification
Faster Reimbursement with Automatic Calculation
IRS Compliant Logs For Accurate Tax Claims
Minimize Expense with Suggested Mileage
Streamline Other Business Functions
Fast Onboarding With Easy To Use Mobile App
The Timeero app tracks employee hours and mileage on Android and iOS mobile devices.
Timeero helps you ditch the tedious and time-consuming pen and paper tracking without investing in expensive gadgets. Simply request employees to install the Android or iOS app on their smartphones.
The app’s intuitive design flattens the learning curve for everyone, including the non-tech-savvy employees. Tracking mileage is as easy as selecting the assigned job and task and tapping the “clock in'' tab. No onboarding is needed, but our excellent customer support team can jump in to help employees quickly figure out every feature.
Improved Accuracy With Automatic Mileage Tracking
When an employee forgets to clock out, Timeero sends them timely reminders.
The Timeero mileage tracking app minimizes the ‘human touch’ in mileage tracking to enhance the integrity of every log. This is important because the reimbursement is only as accurate as the data you feed into Paychex.
The mileage tracker uses drive detection technology to log employee miles in real time. Employees don’t have to lift a finger to track mileage – just clock in and drive. The app will record the mileage when the vehicle exceeds the predefined minimum speed threshold.
The tracker also mitigates intrusive tracking since it tracks location, mileage, time, and attendance only when the employee is on the clock. You can set clock-in and out reminders to improve mileage log accuracy. If a field employee forgets to clock out, the manager can use our Quick Time Clock to clock them out automatically.
Better Employee Accountability With Segmented Tracking
There’s more to mileage tracking than just reimbursing employees and claiming tax deductions. Mileage reports can be used to monitor employee activity and productivity. Timeero’s segmented tracking feature gives you an overall idea of your employees’ workday.
Segmented tracking helps monitor employee field activity.
The feature tracks employees' movement while on the clock and segments their trips based on each stop. It provides vital details such as drive time, the distance between customer locations, and arrival and departure time for each location. Most importantly, it helps determine the time spent at each customer location.
Giving attention to the time each employee spends with the customer can give you a hint of how valuable their discussions are. With proper data analysis, you can determine the time and resources it takes to convert a prospect. You can also set benchmarks for future evaluation of field employees' performance and productivity.
Segmented tracking is an add-on feature, which costs $5 per employee on top of the regular pricing plan.
Save Time With Automatic Trip Classification
When employees use their vehicles, business and personal trips can overlap. If employees tend to classify trips at the end of their shift, it leaves room for misclassification errors.
If a personal trip ends up on the business log, your company will lose money through accidental mileage reporting. On the other hand, if a business trip is forgotten or misclassified as personal, the employee will claim less than they deserve, and your company will lose a significant tax deduction.
To solve the problem, Timeero requires employees to select the assigned job when clocking in. Every mile logged during that session is attributed to the job/task they chose. This way, you never miss a business trip or wrongly classify personal trips as business.
Faster Reimbursement With Automatic Calculation
Timeero enables managers to audit and approve mileage logs easily. It then uses the approved logs to compute employee reimbursement based on the standard rates.
Suppose you have an employee logging 4,000 miles in a month, and you compensate them under the current IRS mileage rates. Timeero will automatically calculate the employee's compensation using the two variables to save time and expedite the reimbursement process.
The data you export to Paychex shows the actual reimbursement of each employee. Using our earlier example, you’ll import the total compensation for this employee, which is $2,680.
As mentioned, Timeero-Paychex integration supports employee mapping. When you export data to Paychex, it’s automatically attributed to that employee. This enables you to reimburse them with a click of a button.
Note: We’ll show you how to export expense reports to Paychex with Timeero.
IRS-Compliant Mileage Logs For Accurate Tax Claims
Tracking mileage isn’t all about compensating employees; it’s also a way to reduce your taxable income. To qualify for a tax deduction, the mileage logs must meet the conditions defined by the IRS.
Timeero is designed to track mileage with IRS compliance in mind. Every mileage entry has the following details:
Job and tasks completed during travel
Total mileage
Start and end date
Start and end time
The device used to track mileage
Map view with a turn-by-turn route
You don’t need to chase down employees for missing details or engage in the back-and-forth to correct inaccurate data. Timeero automatically captures the details for each trip in near-real-time to speed up the approval process.
Commuting miles aren’t tax deductible and shouldn’t be included in an employee’s daily mileage log to be IRS-compliant. With Timeero’s commute mileage feature, accounting for these miles traveled is a cinch.
Suppose the distance from home to the first job (or office) is 10 miles. Set the employee commuter mileage to 20 miles and Timeero will automatically deduct the commute miles from the employee's daily mileage.
If the employee logs 100 miles, Timeero will take away 20 miles before or at midnight that day. This ensures every employee's mileage log is accurate and IRS-compliant. Learn more in our commuting mileage reimbursement guide.
Minimize Expenses With Suggested Mileage
Timeero's suggested route feature helps minimize other business expenses. It recommends a shorter route the employee can take to reach a destination faster with reduced fuel costs. When the vehicles cover shorter distances, wear and tear is reduced, decreasing potential maintenance costs.
The route replay feature encourages adherence to cost-saving policies. You can view an employee's GPS trail path to confirm whether they took the recommended route.
Streamline Other Business Functions
Timeero’s capabilities transcend mileage tracking. It has other powerful tools, such as:
Geofenced time tracking that lets you track employee time and attendance. The time tracking system has features you don’t get with the Paychex Flex time tracker, such as the facial recognition feature (available on the Timeero kiosk app), which helps curb buddy punching.
Cloud-based employee scheduling enables you to create conflict-free employee schedules. The module includes a paid time-off (PTO) tracker.
GPS location tracker, which helps you monitor employee location in real time.
The California break tracker is a game-changer ideal for businesses in California. It ensures employees take breaks according to California break rules, and the information is reflected on employee timesheets.
A daily sign-off form requires employees to sign their timecards to confirm they adhered to the California break rules.
Integration with other payroll solutions such as QuickBooks, ADP, Gusto, Paylocity, Xero, and Viventium.
How to Export Timeero Mileage Data To The Paychex Dashboard
Exporting your mileage data to Paychex is easy. Before you begin, ensure all Paychex users are mapped to their corresponding Timeero profiles. Users who aren’t appropriately mapped aren’t included in the exported reports.
Log In to Timeero
Log in to your Timeero account and select “Reports.”
Generate Mileage Report
Click “Report By Mileage” and select an appropriate data range – or the period you want to reimburse employees.
Export Reports to Paychex
Audit the reports to confirm that everything is in order. If everything looks okay, click “Export” on the top right and select “Export to Paychex.”
Note: Make sure the Paychex Standard Payroll import functionality is turned on. When set up correctly, the Paychex-Timeero integration enables you to export mileage logs from Timeero directly into your Paychex account. You can export data for one user or multiple workers all at once.
Does the Law Require Mileage Reimbursement?
No, mileage reimbursement isn’t required by federal law. However, federal law does require employers to compensate their employees up to a point. For example, if failing to reimburse employees causes their minimum wage to fall below the federal minimum wage, you could face lawsuits and legal penalties.
Some state laws are explicit regarding mileage reimbursement. California, Illinois, and Massachusetts state laws require employers to pay employees for travel-related expenses and other costs incurred due to business use of a personal car.
While mileage reimbursement is a legal gray area in many states, it’s better to consider it a must-do for your business to boost employee morale and retention. If you don't know where to start, read our comprehensive guide to employee mileage reimbursement. You can also use the mileage reimbursement policy template as a springboard.
Make Reimbursements Easily With The Paychex - Timeero Integration
Paychex doesn’t offer a built-in mileage tracker, but its seamless integration with Timeero makes up for the missing capability. The Timeero mileage tracker enables you to track mileage with employee smartphones. It uses drive detection technology and a minimum speed threshold to improve the accuracy of employee mileage logs.
You can handle the mileage approval process through Timeero so the reimbursement data imported to Paychex is error-free. When payday rolls around, export the mileage data to Paychex with a few clicks to reimburse employees on time.
Want to try Timeero? Start a 14-day free trial today to learn more about Timeero’s user-friendly mileage, location, and time tracking solutions. No credit card is required. Head to our website, create an account, and you’re ready to roll. Alternatively, book a free consultation today, and our team will guide you through the startup process.
Paychex Mileage Tracker: FAQs
How Do I Track Mileage for Payroll with Paychex?
To track mileage for payroll with Paychex, you need an automatic mileage tracker like Timeero, which uses employee smartphones to log miles automatically.
How Do I Calculate Mileage Reimbursement with Paychex?
Paychex uses the latest IRS mileage rates to compute employee reimbursement based on the business mileage data they input into the expense tracker.
How Do I Add Expense and Mileage in Paychex?
To add an expense in Paychex, you need to input the expense amount, select the expense type, and upload receipts to substantiate the expense. Business owners can import mileage data from a mileage tracker like Timeero to reimburse mileage expenses.
Does Paychex Track Your Location?
Yes, Paychex captures an employee's location, but the data only facilitates accurate time tracking.
Want a More Reliable Mileage Reimbursement Process?
Streamline your mileage tracking and reporting with Timeero.
Samson is a mathematician turned content marketer specializing in SaaS and Tech content. He focuses on the practical aspects of software systems while keeping abreast of the industry’s cutting-edge principles to create informative and engaging content. When he’s not writing, Samson spends time playing or watching soccer.
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