There’s not a whole lot to report with the mileage rate this year. It is up 1 cent from last year. Update your records for reimbursement calculations. If you track expenses with Timesheets.com, update the rate field in the company settings.
“Beginning on Jan. 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 54.5 cents for every mile of business travel driven, up 1 cent from the rate for 2017.
- 18 cents per mile driven for medical or moving purposes, up 1 cent from the rate for 2017.
- 14 cents per mile driven in service of charitable organizations.
The business mileage rate and the medical and moving expense rates each increased 1 cent per mile from the rates for 2017. The charitable rate is set by statute and remains unchanged.” IRS.gov
Mileage Reimbursement Quick Facts
- Mileage reimbursement is not required by federal law.
- Not all states require mileage reimbursement.
- Travel time during working hours is not the same as mileage reimbursement. Travel time is compensable by law.
- Mileage reimbursement is required when the mileage “kickback” causes an employee to drop below minimum wage.
Employers deal with reimbursement differently. There are a lot of things to consider when coming up with a reimbursement policy. Consider these five tips before starting your plan.