Tuesday, December 22, 2015

Mileage Reimbursement Rate to Drop.

The IRS has issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) are: 54 cents per mile for business miles driven (down from 57.5 cents in 2015) 19 cents per mile driven for medical or moving purposes (down from 23 cents in 2015) 14 cents per mile driven in service of charitable organizations (unchanged from last year) The drop in rates for 2016 reflects lower gas prices. Workers’ Compensation Travel Reimbursement Rates Connecticut workers’ compensation law requires employers to furnish or pay for transportation for an injured employee traveling to and from medical care. If the claimant uses a private vehicle, he or she must be reimbursed for mileage at the federal mileage reimbursement rate set by the General Services Administration. The GSA and IRS rates are often very close or the same, so it is likely that the workers’ compensation travel reimbursement rate will drop in 2016. The GSA typically publishes its new rates in the Federal Register the last week of December; those rates are effective Jan. 1.

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