Wednesday, 28 November 2007

IRS Standard Mileage Rate for 2008

The IRS announced the 2008 standard mileage rate: $0.505 per mile, which is $0.02 more than in 2007. The IRS is really feeling the pinch at the gas pump, eh? The IRS press release is here.

The California DLSE's enforcement position is that employers may reimburse employees' business use at the IRS standard mileage rate without running afoul of Labor Code section 2802. Remember, though, that the California Supreme Court in the Gattuso decision (discussed here) did not endorse the IRS standard mileage rate as conclusively adequate under section 2802. Therefore, if an employee wishes to track "actual" costs and seek a different reimbursement rate, that request at least must be evaluated under the statute.

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