IRS Announces Increase in Mileage Reimbursement Rate

In recognition of the recent increases in gasoline prices, the IRS has raised the maximum mileage reimbursement rate to $0.585/mile (58.5¢ per mile) effective July 1, 2008. This is an increase of $0.08 per mile over the rate that went into effect on January 1, 2008. This rate will remain in effect through 12/31/08.

Per SAG and AFTRA requirements, this new rate of 58.5¢ per mile is applicable to talent mileage reimbursements for work done on or after July 1, 2008.

In accordance with IRS regulations, mileage reimbursement amounts over 58.5¢ per mile will be treated as wages and subject to payroll taxes.

The IRS reviews the mileage reimbursement rate each year. Annual adjustments take effect on January 1 of the following year. Mid-year adjustments such as this one are only made under special circumstances.

Click here for a copy of the text of the IRS press release regarding the Mileage Rate Increase. Further information regarding the mileage rate increase can be found at: http://www.irs.gov. Click the “Higher Mileage Rate Now In Effect” link for the IRS announcement.

If you have an questions, please contact your TEAM Payroll Coordinator or Muriel Katz at (818) 441-5215 or via email at: mkatz@teamservices.net.