IRS Lowers Standard Mileage Rates

The IRS recently issued its 2014 standard mileage rates. Of note, the new rates decrease one-half cent from the 2013 rates. Beginning on January 1, 2014, the standard mileage rates will be:

  • 56 cents per mile for business miles driven;
  • 23.5 cents per mile driven for medical or moving purposes; or
  • 14 cents per mile driven in service of charitable organizations.

Employers are required to reimburse employees for work-related mileage, other than the usual commute to and from work. Employers may choose to pay rates lower than the IRS standard if the chosen rates fully compensate the employee for travel-related costs (including fuel, insurance, repairs and depreciation). However, payment of the IRS standard rates will be deemed reasonable and sufficient reimbursement as a general rule.

For questions about mileage reimbursement or any other employment law issue, please contact any of our employment attorneys at LightGabler.