It’s a new year and that means new Internal Revenue Service changes to a multitude of tax topics. One of the topics that’ll probably affect your business is mileage. How you track it, how you reimburse it, and how you make sure you have the right rates are one of those small, but critical, expenses to a growing (and traveling) company.
Starting January 1st, 2016, the standard mileage rate for cars being used for business purposes will be 54 cents per mile, 3.5 cents less than what it was in 2014. The rate for medical or moving purposes will be 19 cents per mile, that is 4 cents less than what it was in 2015. That one may or may not be useful to you depending on if you cover employee’s moving costs. Finally, mileage for charitable organization related driving is staying the same, at 14 cents per mile.