Mileage reimbursement rates for federal employees using their own vehicle for government business could go up by 8 cents soon.
Rates would increase if the
government continues to use the Internal Revenue Service (IRS) standard rate - which has recently risen - for calculating the tax-deductible costs for operating an automobile for business purposes.
For those unfamiliar with the reimbursement program,
federal employees are allowed to request the use of their own personal vehicle
when there is no government transportation available or if it is more advantageous
for the government. When approved, the member fills out a travel reimbursement
for the mileage to be paid at the government approved rate.
Even though the IRS has raised its standard rate, an increase for federal employees is not guaranteed. The General Services Administration (GSA) sets the mileage reimbursement rate(s) for federal employees and uniformed
members. Currently, the
$.505/mile rate is at the ‘business travel’ (TDY) ceiling
established by the IRS. Historically, the GSA has followed the IRS rate.
By federal law, TDY mileage rates are based on cost
data collected by GSA, but TDY
mileage rates can never be higher that the rate allowed by IRS.
Normally, the IRS updates mileage rates once in the
fall for the next calendar year; however, due to the increasing fuel prices,
the IRS is adjusting the standard mileage rates to better reflect the real cost
of operating an automobile.
Recently, the National
Treasury Employees Union demanded a mid-year rate increase asking for immediate
action in extending the higher mileage reimbursement rate to federal employees.
The mileage reimbursement
proposal does not apply to employee transfers or relocations. Those are designated as
transportation expenses, rather than allowances for the cost and operation of a
vehicle, according to GSA.
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