Asphalt Payback
The Internal Revenue Service has announced its 2023 optional standard mileage reimbursement rate for employee business use of a personal vehicle, effective January 1, 2023, up from the mid-year increase of 62.5 to 65.5 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 65.5 cent/mile rate starting January 1, 2023.
For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
See also:
- ·What a Difference a Half-Year Makes – Four Cent Increase, IRS Standard Mileage Rate (July 8, 2022)
- ·What’s New in 2022 Mileage Reimbursement Rates – IRS Standard Mileage Rate Increasing 2.5 Cents (December 28, 2021)
Cindy Bamforth
January 5, 2023