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”. Companies use it to calculate the tax-deductible costs of operating an automobile for business. The IRS calculates the mileage rate, also known as the…

Every year the IRS announces a new IRS mileage rate. That number is generally somewhere between 60 cents and 30 cents, but it has considerable impact on many companies’ vehicle programs. So what is the IRS mileage rate? And when it changes, how should companies react? We’ll explain everything you need to know about the…