From our partner GTM:
Beginning on Jan. 1, 2023, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks)聽increased to 65.5 cents per mile聽driven for business use, up 3 cents from the聽. In recognition of gasoline price increases, the IRS made this special adjustment for the final months of last year.
These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.
Important To Note
While federal law does not require you to reimburse your employees for mileage, in some states like California; Illinois; Massachusetts; and Washington, D.C.聽it is legally required to reimburse your employee聽for the miles they drive in their own vehicle while on the job. And that would be at the IRS Standard Mileage Rate.聽Even outside of those states it is a best practice to pay your nanny for mileage based on the IRS standard rate.
Your nanny鈥檚 commute to and from your home does not count toward their mileage reimbursement.Gas and mileage reimbursement is not taxable compensation so there is a financial advantage to using the IRS standard mileage rate.