ROAD BILLThree Cents Increase, Annual IRS Standard Mileage Rate « Law Offices of Timothy Bowles | Top Employment Law Firm in Los Angeles

ROAD BILL

Three Cents Increase, Annual IRS Standard Mileage Rate

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 BowlesCindy Bamforth or Helena Kobrin.

See also:

Cindy Bamforth
January 5, 2023

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    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: