Due to the recent increase in fuel prices, the IRS announced on June 9th that for the period July through December 2022, the optional standard mileage rate for business travel is increasing from 58.5 cents to 62.5 cents per mile.
Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business.
While mileage reimbursement for employee travel is not a requirement for businesses, many employers opt to reimburse employees who use their personal vehicles for business purposes.
For company’s who have customarily reimbursed their employees for business travel, they should account for the rate increase to 62.5 cents per mile beginning July 1, 2022.
Businesses should keep in mind that, whether or not they reimburse employees for mileage, they may still be required to pay them wages for business-related travel.
Marzano Human Resources Consulting ensures that businesses are complying with wage and hour laws when requesting that their employees travel on company-related business.