Reimbursing Your Employees: Mileage Rates Remain Unchanged
The IRS has not changed the mileage reimbursement rate this year despite the rising cost of gasoline. The current rate of .51 cents per mile went into effect January 28, 2011. The last time gasoline prices were as high as they are today was Spring 2008. At that time, in recognition of the high cost, the IRS announced an eight cent increase in the mileage reimbursement rate to .585 cents per mile for the period of July 1, 2008 – December 31, 2008. Typically, the standard mileage rate for business is adjusted in the beginning of each calendar year based on an annual study of the fixed and variable costs of operating an automobile. The IRS announced the 2008 increase on June 23, 2008. Can we expect another mid-year adjustment to keep pace with the rising cost of gasoline? Stay tuned.
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