Mileage Reimbursement

drehil

Does your organization pay employees for work miles put on personal vehicles? If so, do you use the IRS rate or a different rate?
We currently use the IRS rate but the CEO is looking to lower it.

davids

We use the IRS rate.

sonny

Yes, IRS

Nevada HR

Yes, IRS.

KSR6450

IRS rate

NaeNae55

We use the IRS rate. If you pay less, then employees can claim the difference on their taxes. Most employees will not understand the process though, and between explaining it and the related morale, you might end up costing your company more in the long run. Also, employees who use the short form will miss out on claiming the deduction. And after all, they did use their personal vehicle for your company's good.

It may seem like employees are making a ton when you reimburse them, but it all comes out in the end. The IRS uses a lot of data to come up with the mileage rate, and it usually is a little behind reality.

Now that gas prices have dropped a little, I expect the IRS to drop the rate a little as of 1/1//09. Just my opinion, though, I haven't read anything on it.

Good luck!

Nae

Dutch2

We are lower than the IRS amount. When the price of gas was going so high we raised it to .42 per mile.

joannie

Our policy states employees will be re-imburse at the IRS rate effective January 1 of each year. We had some grumbling when the rate changed mid-year, but nothing we couldn't weather.