2024 Mileage Reimbursement Rate Increased to $0.67
As of January 1, 2024, the IRS mileage reimbursement rate has increased from ¢65.5 cents to ¢67 cents per mile. This applies to electric and hybrid-electric automobiles as well as gasoline and diesel-powered vehicles.
What is the IRS Mileage Reimbursement Rate?
The IRS mileage reimbursement rate is the amount set by the Internal Revenue Service (IRS) that businesses can use to reimburse employees for the use of their personal vehicles for work-related purposes. This rate takes into account various factors such as fuel costs, vehicle depreciation, insurance, and maintenance. You also have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Check with your accountant or CPA if you have any questions.
Why Is This Important?
Understanding and implementing the new mileage reimbursement rate is crucial for both employers and employees. Accurate reimbursement not only ensures that employees are fairly compensated for their expenses but also helps businesses maintain compliance with tax regulations.
Action Steps for Employers:
Update Reimbursement Policies: Review and update your company's reimbursement policies to reflect the new IRS mileage reimbursement rate. This ensures that your employees are reimbursed accurately for their business-related travel.
Communicate Changes: Inform your employees about the updated mileage reimbursement rate, explain how it will impact their reimbursements. Clear communication helps build trust and transparency within your organization.
Update Record-Keeping: Make sure your record-keeping systems are updated to track and document mileage reimbursements accurately. Accurate records not only facilitate compliance but also help with tax reporting.