The amount your company can reimburse employees for business miles driven is going to change come January.
The IRS has set a new rate of 56.5 cents per mile driven in a car, van, pickup or panel truck for 2013. That’s a cent more than the current rate.
Of course, companies can reimburse at any rate they choose or offer no reimbursement at all, but for those that pay more than 56.5 cents per mile, they must add the amount in excess of that figure to employees’ taxable income.
Other rates for 2013 include:
- 24 cents per mile driven for medical or moving purposes, and
- 14 cents per mile driven in service of charitable organizations.
Like the business mileage rate, the medical and moving rate is also a one cent increase from last year.
Will you be increasing your reimbursement for traveling employees? Let us know how this impacts you in the comments below.