Many of us are required to use our personal automobiles for job-related travel. We may be attending a meeting away from the office, visiting a client, or simply running errands necessary for the smooth operation of the business. All of these trips would make an employee eligible for mileage reimbursement. The amount of money paid to you by your employer for each mile traveled has always been determined by the Internal Revenue Service. This amount is generally adjusted each year and widely published so that all companies reimburse their employees at the same rate.
This year the IRS has chosen to increase the reimbursable amount effective July 1, 2008. I’m sure that this is a direct response to the extremely large change in the gasoline price per gallon, which the citizens of this country have been absorbing in the first six months of this year. The IRS has raised the automobile mileage rate for businesses and others from 50.5 cents per mile to 58.5 cents effective July 1, 2008. In addition to businesses, this rate applies to those who use their automobiles for charitable, medical or moving purposes.
If you drive for your employer and are eligible for auto expense reimbursement, be certain to keep detailed records as to your mileage and to submit them for repayment on a regular and timely basis.
