IRS Issues Standard Mileage Rates for 2020January 06, 2020
IRS released the standard mileage rates for 2020 in IRS Notice 2020-05, that will begin on January 1, 2020.
At a Glance
- Beginning on January 1, 2020, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
- 57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019,
- 17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019, and
- 14 cents per mile driven in service of charitable organizations.
On December 31, 2019, the IRS released the standard mileage rates for 2020 in IRS Notice 2020-05. The business mileage rate decreased one half of a cent for business travel driven and three cents for medical and certain moving expense from the rates for 2019. The charitable rate is set by statute and remains unchanged. Per Rev. Proc. 2019-46 the standard mileage rate can be used as the maximum amount an employer can reimburse an employee for operating an automobile for business purposes without substantiating the actual expense incurred.
Employers that use the standard mileage rate to reimburse employees for operating a vehicle for business purposes will want to update their calculations and any written policies that reference the reimbursement rate.
Thank you for choosing Paylocity as your Payroll Tax and HCM partner.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.
Date Posted: January 06, 2020
- Paylocity News
- Human Resources