The Internal Revenue Service has announced its 2024 optional standard mileage reimbursement rate for employee business use of a personal vehicle, effective January 1, 2024, up from 65.5 to 67 cents/mile.
These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.
These standard business mileage rates stem from annual government studies of fixed and variable automotive operating costs, including insurance, repairs, maintenance, gasoline and oil.
Under California Labor Code section 2802, employers must reimburse employees for all actual work-related expenses necessarily incurred.
Take-Away:
Employers applying the IRS standard should reimburse work-related employee vehicle use at the new 67 cent/mile rate starting January 1, 2024.
For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
See also:
- New Year, New Leaf – Workplace Policy Handbook & Forms for 2024 (January 5, 2024)
- Friday, January 26, 2024, Friday, February 23, 2024 – Annual Seminar for Employers Covering Employment Legal Essentials and New Workplace Laws (December 29, 2023)
- Avoid Blower Blowback – Employer Must Reimburse for Work-Related Use of Personal Cell Phones (June 10, 2022)
Cindy Bamforth
January 18, 2024