Mileage Rate

When it comes to mileage reimbursement, there are a few options that employers can choose. Options include: car allowances, the IRS mileage rate, cents-per-mile rates (other than the IRS), and fixed and variable rate (FAVR) programs.  The option that many companies choose is the IRS rate because it seems the most standard and the easiest….

Let’s set the record straight: no, the IRS mileage rate is not a required mileage reimbursement rate. Set by the IRS, the standard business mileage rate serves as a “safe harbor” to calculate the tax-deductible costs of operating an automobile for business. The IRS mileage rate is calculated annually and is meant to reflect the…

For as long as employees have been driving for work, there has been a need to determine their business-related driving expenses. Unfortunately, this is not as easy as collecting a handful of gas station receipts after each trip. To calculate their actual expenses of driving for business, employees must track their business mileage and their…