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What is Kilometric.

Kilometric mileage is a form of employee billing, which involves paying employees for the kilometers they drive in the performance of their duties. It is a popular method in companies where employees frequently travel on business, such as sales representatives, couriers or employees serving customers at different locations.

The essence of mileage reimbursement is the inclusion of costs associated with the use of a company or private car for professional purposes. An employee is reimbursed for kilometers driven based on a set rate per kilometer, which includes not only fuel costs, but also vehicle depreciation, insurance, servicing or tolls.

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For the employer, the benefit of the mileage allowance is the ability to accurately determine the costs associated with business travel and to fairly compensate employees for their efforts and commitment. For the employee, on the other hand, the mileage allowance provides an additional motivation to work efficiently and an incentive to use their own car for business purposes.

It is worth noting that the use of mileage allowance requires proper documentation, such as travel records, fuel invoices or an employment contract that includes a clause on accounting for business travel expenses. Therefore, it is advisable to get professional help from an accountant or payroll specialists to avoid mistakes and ensure compliance with applicable laws.

In summary, mileage allowance is an effective way of accounting for employees' business travel, which allows for fair and transparent accounting of costs associated with the use of a car for professional purposes. For companies that frequently use traveling employees, it is an essential tool to effectively manage costs and motivate the team to achieve business goals.

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