The Internal Revenue Service recently issued the 2013 optional standard mileage rates, which are often used by employers to reimburse employees for using employees’ automobiles for business purposes.
Beginning January 1, 2013, the standard mileage rates for the use of an auto will be (1) 56.5 cents per mile for business miles driven, (2) 24 cents per mile driven for medical or moving purposes, and (3) 14 cents per mile driven in service of charitable organizations. The business miles driven rate increases during 2013 by 1 cent from the 2012 rate.
California law requires employers to reimburse employees for all expenses actually and necessarily incurred. Generally, an employer who reimburses employees for business-related automobile satisfies the employer’s obligation.
Read more about changes in the IRS Reimbursement Rates here.