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e-Alert: IRS Raises Standard Mileage Rate Effective July 1, 2022

By June 27, 2022No Comments

Background

Employers often pay the Internal Revenue Service (IRS) a standard mileage rate to employees who use their own vehicles for business-related matters. The IRS typically updates the standard mileage amount each calendar year, however, due to soaring fuel costs, there is a mid-year change.

Summary

For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of 2022. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. These new rates become effective July 1, 2022.

Employer Next Steps

  • Employers should consider this increase when processing employee expenses.
  • If you are a Full-Service or Virtual HR client and would like our assistance updating any relevant policies, please email us.
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This content is provided with the understanding that HR Knowledge is not rendering legal advice. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable laws in your jurisdiction and consult experienced counsel for legal advice. If you have any questions regarding this content, please contact HR Knowledge at 508.339.1300 or email us.

 

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