There are two ways to issue mileage payment.

1. taxable payment
If you are trucking company and you pay driver by mileage. All payment are taxable. You need to use paycheck to pay them.
http://www.halfpricesoft...heck-by-mileage-rate.asp 

2. nontaxable payment
If you just want to issue reimbursement to employee and you do not need to report this non-taxable income to IRS, please use MISC check feature.
http://www.halfpricesoft.../miscellaneouscheck.html 

Please feel free to contact us if you still have any questions.

Thank you.

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Dear sir,

When I pay mileage to my employees. Tax is taken from the mileage amount, how can I stop this?
It seem like this software do not have a mileage calculator. Or maybe I have it setup incorrectly. Help