Sunday, November 26, 2006

IRS Announces 2007 Mileage Reimbursement Rate

The new IRS mileage reimbursement rate for 2007 will be $0.485 per mile for business, $0.20 for moving or medical purposes, and $0.14 for charitable purposes. The IRS bulletin announcing these changes is here.

California employers must reimburse employees for expenses they incur. The state Division of Labor Standards Enforcement accepts the IRS rate as adequate compensation for employees' use of personal automobiles. Therefore, employers should adjust the reimbursement rate effective January 1, 2007.

DGV