In response to rising gasoline prices, the Internal Revenue Service (IRS) has increased the standard mileage rate for the final six months of 2022. Starting July 1, 2022, the standard mileage rate for business travel will go from 58.5 cents per mile to 62.5 cents per mile. The rate for deductible medical or moving expenses, available for active-duty members of the military, will increase from 18 cents to 22 cents per mile. The old rates will remain in effect through June 30, 2022.
The business standard mileage rate is used to compute the deductible costs of operating a vehicle, such as depreciation, insurance, and other fixed and variable costs. Employers have the option of calculating the actual costs of vehicle use instead of using the standard mileage rate.
Midyear increases in the optional mileage rate are uncommon and last occurred in 2011. Employers should ensure that they properly account for the rate increase beginning July 1, 2022.
If you have any questions, please contact Employers Council at info@employerscouncil.org.
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