Tue 7 Oct, 2008 05:35 pm
What is current per mile rembursement ? (auto travel) industry standard.
I don't know if there is a "legal/tax" per mile reimbursement - but my company currently reimburses .505/mile. They tend to line up to meet any legal/tax requirements.
The current IRS reimbursement for mileage is 58.5 cents.
Good find. I tried to find the number in Circular E last night, and gave up.
Jclbiz should be aware that that is the maximum a company may pay without having to treat the reimbursement as payroll. Good companies will pay the max, but there's no requirement.
Yes, your employer can pay any amount s/he chooses, but anything your employer pays over whatever the current rate the IRS allows us to deduct as business expense--Mac posted the current rate-- is fully taxable as normal income.
Per Diem paid to cover mileage, meals, motel etc., however, generally is not.
One must put it to pencil and paper to determine which is the most cost effective. In calculating mileage, though, the mileage allowance not only covers fuel but also wear and tear on tires and other mechanical parts and general depreciation on your vehicle and that can be substantial. Sometimes a high mileage allowance can be enough to cover that plus the additional taxes. If you travel a lot you probably aren't coming out even with the 58.5 cent allowance.