Insights: Article

Changes to Standard Mileage Rates in 2018

December 27, 2017

If you have employees who travel, it’s time to pay attention because the standard mileage rates have changed for 2018. The IRS announced that business standard mileage rates for 2018 have increased to 54.5 cents per mile.

Tell me more.

The mileage rates for business travel are based on a study of the fixed and variable costs for operating an automobile. The change for 2018 is a 1 cent increase from last year’s rate of 53.5 cents per mile.

This is an important calculation to know if you’re reimbursing employees for driving on or for the job. While 1 cent may not sound like much, it can add up if you’re not paying attention. Plus, money paid to employees above the federal mileage rate becomes taxable wages to the employee. 

What else?

The changes to the business standard mileage rate goes in effect on Jan. 1, 2018—so you need to be mindful of your years. If an employee files an expense report in 2018 for miles driven in 2017, the 2017 rules apply.

And one other thing.

The IRS also shared the love and changed the 2018 standard miles driving for medical or moving purposes. The 2018 rate will now be 18 cents per mile, up from 17 cents per mile in 2017.

The rate for operating a car for charity purposes remains unchanged at 14 cents per mile in 2018. 

Latest Insights

February 19, 2019
A bank account tax levy never comes at a convenient time, so it’s important to know your options.
February 15, 2019
The purpose of this whitepaper is to provide construction entities with a quick and understandable reference guide for common issues in construction accounting. We have covered several topics we commonly receive questions about in the construction…
February 15, 2019
If a lien has been filed against you, it’s important to understand your options for release, discharge and subordination.
February 14, 2019
Firm News
The union adds a new office and state to the regional CPA firm and adds additional ERP talent to their growing NetSuite practice.
February 12, 2019
Your employees are the people most likely to catch fraud in the workplace. But how can you help them get over their fears of reporting it?
February 11, 2019
If you receive a letter from the IRS, it’s important to open it right away. This article outlines different types of IRS correspondence and what each one means for you.