Finally… we’re getting a (small) break from the IRS!
The IRS released its mileage reimbursement rates for 2022 on December 17, and we are seeing some benefits for business, individuals, and other organizations.
Effective January 1, 2022, the following rates will apply:
- 58.5 cents per mile driven for business use (an increase of 2.5 cents over 2021)
- 18 cents per mile driven for medical and moving expenses for active-duty members of the Armed Forces (an increase of 2 cents over 2021)
- 14 cents per mile driven for charitable organizations (no change over 2021)
There is no federal law requiring employers to reimburse their employees for mileage and vehicle costs, unless failing to do so would result in the employee’s net pay falling below minimum wage. However, California, Illinois, and Massachusetts do require reimbursement at the state level. And, honestly, with today’s competitive job market, reimbursement is a good practice to draw potential employees.
Further information can be gained through the IRS’ website IRS issues standard mileage rates for 2022 | Internal Revenue Service or by contacting LBC.