Are your peers reimbursing at the new mileage rate?
July 15, 2008 by Carol KatarskyPosted in: Best practices, In this week's e-newsletter, Latest news & views, T&E
IRS’ new business mileage rate of 58.5 cents was a hefty hike. But are other companies actually reimbursing at that rate?
The definitive answer: Kind of.
A new survey by the Society of Human Resource Management shows that 42% of companies say they’re reimbursing at the new cap — and another 3% are planning to get there.
That’s the most common strategy by far, but it also means that more than half of your peers aren’t at the full cap — and don’t plan to be.
Chances are however, that those companies that don’t raise to the full mileage rate, will be raising their reimbursement rates to at least keep within shouting distance of IRS’ rate.
What was your company’s response to the mid-year mileage rate hike? And how did employees respond? Let us know in the comments.
Tags: Benchmarking, mileage rate, Reimbursement
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July 17th, 2008 at 11:47 am
Is there a minimum rate to remain in IRS compliance rules?
July 17th, 2008 at 11:48 am
My company refuses to go with the increase. We are staying at the $0.485 rate.
July 17th, 2008 at 1:08 pm
Our not-for-profit agency has a policy to reimburse according to our state reimbursement rate. This rate for Illinois increased from 0.485 to 0.505, effective July 1, 2008. Coincidentally, the state granted no additional money to help with the increase. While we have traditionally reimbursed at a lower rate that the IRS rate, this current 8-cent difference is definitely being noted by employees who are struggling with the increased gas rates.
July 17th, 2008 at 2:30 pm
D Powers: Technically, I don’t believe you’re required to reimburse at all – of course, that’s according to IRS. Employees may see things differently, especially if other companies in your industry are reimbursing more.
Kathy: How do you handle it when employees complain about the difference?
July 18th, 2008 at 12:35 pm
My company always reimburses current IRS rates at their effective date. Employees are appreciative and believe they are being treated fairly.
August 20th, 2008 at 7:55 am
My company always reimburses at the current IRS Rate. They expect it.
October 30th, 2008 at 9:58 am
Our company, a law firm, has offices in multiple states and always uses the current IRS rate.