IRS Lowers Mileage Rate for 2014
From the IRS website:
Beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 56 cents per mile for business miles driven
- 23.5 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
Employers don’t have to reimburse employees for mileage, although it is generally good practice. The IRS rate is both a guide for employers and the rate employees can use to claim mileage deductions on their taxes when employers don’t reimburse. It is important to note that while employers don’t have to reimburse this rate exactly, if they reimburse over the rate, then employees must report that excess reimbursment as wages.
Timesheets.com makes it easy to reimburse mileage. Employers can set the mileage rate and then employees can enter their mileage as an expense. In the notes section of the entry, employees should include the odometer readings.