Finance News & Insights

IRS announces 2019 mileage rate: Vital details for Finance

The 2019 mileage rate has arrived. And this year, your team gets to be the bearer of some great news.

Once again, IRS is bumping up the amount your company can reimburse road warriors.

The new rates

Effective Jan. 1, 2019, the new rate is 58 cents per mile, up from 54.5 cents in 2018.

So this coming year, your employees will get an extra 3.5 cents tax-free for every business mile they drive. That’s a start-of-the-year gift they’ll all appreciate.

Along with the standard mileage rate, the two other notable mileage rates for 2019 are:

  • 20 cents per mile for medical or moving purposes (up from 18 cents), and
  • 14 cents per mile driven in service of charitable organizations (same as last year).

Communicating the news

To ensure compliance with the new rate from the get-go your finance team will want to spread the word immediately.

Check to see that A/P’s on it – first with a well-crafted email blast, then by updating other company mediums (like your Intranet, T&E policy and expense report template).

And as the news circulates, you’ll want to make sure employees fully understand that this new rate is good news for them; it’s a change they’ll want to comply with.

The two-fold reason? Gas prices have gone down significantly toward the end of the year. Between a higher mileage rate and lower prices at the pump, your employees really win this coming year.

That should keep change resistance, grumbling and mileage rate errors from making their way to your department.

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