Good News for Employees Who Are Eligible For Mileage Reimbursement At Work
The Internal Revenue Service (IRS) just announced some encouraging news for employees who regularly drive for work purposes. Starting from January 1, 2024, the standard mileage reimbursement rate for businesses is set to increase by 1.5 cents, from last year’s rate of 65.5 cents per mile to $0.67 per mile driven for business use.
Whether you drive a van, pickup truck, panel truck, electric or hybrid vehicle, or a traditional gasoline or diesel-powered car, this adjustment applies to you.
The decision to update the standard mileage rate for business use is based on an annual study conducted by the IRS, which considers both fixed and variable costs associated with operating an automobile. This careful assessment ensures that the reimbursement rate accurately reflects the economic realities faced by employees who use their personal vehicles for work-related travel.
Interestingly, the reimbursement rate for miles driven in service of charitable organizations will remain unchanged from 2023, standing at $0.14 per mile driven so not everyone will enjoy an increase.
If your employer provides mileage reimbursement, you might want to review your next reimbursement check to be sure that the updated rate has been taken into account. Employers typically adjust their reimbursement rates promptly, but oversights can happen. Being proactive in confirming the new rate ensures that you receive fair compensation for your efforts.
This update from the IRS is a positive development for employees who frequently drive for work. As the standard mileage reimbursement rate increases, take the opportunity to optimize your travel-related compensation. Stay informed, communicate with your employer if necessary, and make sure you're getting the most out of the updated reimbursement rate. After all, it's your hard work behind the wheel that keeps businesses moving forward, and you deserve fair and accurate compensation for your efforts.
