Many employers reimburse business travel at the rates published by the IRS. These were increased mid-year to reflect the steep rise in gas prices. The IRS has just announced the 2009 Standard Mileage Rates.
The 2009 rate of 55 cents is higher than the January 2008 standard of 50.5 cents. But the newly publicized standard is a reduction from the mid-year adjustment of 58.5 cents adopted in July. According to the IRS the new rates, “factor in the recent reversal of rising gasoline prices.”
If your policy is to reimburse at the exact rate published by the IRS make certain that you communicate this before the end of the year. Employees should not learn of the change by receiving reimbursement for a trip that is less than they expected. Circulate the
If business travel mileage reimbursement is something you review and set as needed for your company it may not be the best time to drop the rate. Identify the total cost and potential repercussions before adding to economic doom and gloom. The goodwill may be well worth the extra cost.
It wouldn’t hurt to announce that no change will be made even though the