IRS Standard Mileage Rate Increasing 2.5 Cents
The Internal Revenue Service has announced its 2022 optional standard mileage reimbursement rate for employee business use of a personal vehicle, effective January 1, 2022, up from 56 cents to 58.5 cents/mile.
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.
According to California’s Division of Labor Standards Enforcement, using the IRS mileage reimbursement rate will satisfy an employer’s reimbursement obligation unless the employee provides evidence demonstrating the rate does not cover all actual and necessary business-related vehicle expenses, in which case the employer must pay the difference.
For more information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
Cindy Bamforth
December 28, 2021