Privately Owned Vehicle/Mileage Reimbursement Costs
Mileage is reimbursable when a personal vehicle is used in the conduct of company business. Commuting expenses are not considered company business expenses, but are the personal expenses of an employee. Commuting expenses are defined as the mileage between the employee’s residence and his/her “assigned work site.” Privately owned vehicle mileage reimbursement costs are allowable costs, to the extent they are reasonable.
Mileage Reimbursement Rates
There are two mileage reimbursement rates that businesses use in reimbursing for mileage. They are the Internal Revenue Service (IRS) and General Services Administration (GSA). The IRS rate is what is used for business purposes, and the GSA rate is what is allowable for US Government contracting. Normally, the rates are the same, but if the GSA is lower than the IRS rate, then the difference between the two would be deemed unallowable for US Government cost reimbursement.
Internal Revenue Service[1]
The mileage reimbursement rate and calculation for the US is based on the maximum rate allowed by the IRS. The rates are as follows:
| ----Date---- | --Amount-- |
|---|---|
| July 2011 | $.55 |
| 2012 | $.55[2] |
| 2013 | $.565[3] |
| 2015 | $.575[4] |
Mileage Rate Lookup
GSA Rate
| ----Date---- | --Amount-- |
|---|---|
| 1-1-2011 | $.51 |
| 4-17-2012 | $.555[5] |
| 1-1-2013 | $.565[6] |
| 2015 | $.575[7] |
References and Notes
- ↑ http://www.irs.gov/publications/p463/ch04.html#en_US_2012_publink100033935
- ↑ http://www.irs.gov/publications/p463/ch04.html#en_US_2012_publink100033935
- ↑ http://www.irs.gov/uac/2013-Standard-Mileage-Rates-Up-1-Cent-per-Mile-for-Business,-Medical-and-Moving
- ↑ http://www.irs.gov/uac/Newsroom/New-Standard-Mileage-Rates-Now-Available;-Business-Rate-to-Rise-in-2015
- ↑ http://www.gsa.gov/portal/content/103969
- ↑ http://www.gsa.gov/portal/content/100715?utm_source=OGP&utm_medium=print-radio&utm_term=mileage&utm_campaign=shortcuts
- ↑ http://www.gsa.gov/portal/content/100715
Resources and Links
The Defense Travel Management Office
The Defense Travel Management Office (DTMO) is a useful resource for travelers. There is a section for Travel Regulations and Allowances which gives rates and allowances including JFTR and JTR, sections for allowance tables, Continental United States (CONUS) Cost of Living Allowance (COLA) and Overseas COLA, travel tools among much useful information. http://www.defensetravel.dod.mil/
U.S. General Services Administration (GSA)
GSA establishes Per Diem Rates for CONUS travel. GSA provides a tool that a traveler can perform a search by city and state, or zip code of the city they are traveling. http://www.gsa.gov/portal/content/104877?utm_source=OGP&utm_medium=print-radio&utm_term=perdiem&utm_campaign=shortcuts
Internal Revenue Service (IRS)
The IRS website will provide the rates for tax purposes of POV mileage.