The Internal Revenue Service has announced its 2025 optional standard mileage reimbursement rate for employee business use of a personal vehicle, effective January 1, 2025, up from 67 to 70 cents/mile.
These rates apply to fully-electric and hybrid 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 70 cents/mile rate starting January 1, 2025.
For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
See also:
- Wash the Chaos: Workplace Policy Handbook & Forms for 2025 (October 16, 2024)
- Annual Virtual Seminar, Friday, January 17, 2025 or Friday, February 28, 2025, Covering Employment Legal Essentials and New Workplace Laws (October 10, 2024)
- Out-Of-Pocket Procedure – Business Expense Reimbursement Policy (December 2, 2022)
Cindy Bamforth
December 20, 2024