Thursday, December 04, 2008

IRS Lowers Standard Mileage Rates

Gas prices are plummeting, and the IRS has responded by lowering the 2009 Standard Mileage rates.

Effective January 1, the standard business rate will be 55 cents per business mile, down from the current 58.5 cents per mile.

If you reimburse your employees for business travel, I strongly encourage you to put a policy in your handbook that says something along the lines of "Business mileage will be reimbursed at the IRS standard mileage rate." (Make sure this policy, as well as all handbook policies, are legally reviewed).

You don't want to be too specific with the mileage rate; otherwise, you'll be changing your handbook too frequently (this is the third IRS mileage rate change in the past year).

Read the IRS announcement here.

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