With the new year comes new business resolutions, the start of tax season, and of course, a shiny new and updated IRS mileage reimbursement rate. Hooray! Here’s a quick and dirty run through of the changes and how it affects you and your business travels.
Changes to the IRS 2016 Mileage Rate
As a result of lower gas prices and other maintenance costs projected for 2016, the IRS has updated the standard mileage reimbursement rate for business travel to reflect these changes. For 2016, the new IRS mileage reimbursement rate is $0.54 per mile, a 3.5-cent decrease from last year.
What Does This Mean for You?
The IRS updates the mileage reimbursement rate to set the standard, not required, rate for that year. We’ve noticed over the years that a large number of users will typically set their own company reimbursement rate rather than use the IRS reimbursement rate. As a result, Expensify admins must manually update the rate in their Expensify policies to reflect a new rate for the new year.
Updating Your Mileage Reimbursement Rate in Expensify
To change the mileage rate, simply go to Admin > Policies > (choose your policy) > Expenses. Scroll down to the Distance section to enter a new mileage reimbursement rate. Once you save your changes, this new rate will be applied to all expenses and policies created after the rate has been changed. Don’t worry, it won’t affect old expenses or expense reports.
Need to start tracking your business mileage expenses? Get started here.
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