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Employee benefits are an important part of every employees' total compensation package. The continuously evolving landscape in the areas of health care reform, retirement plan design, and executive compensation makes it difficult for employee benefits professionals to keep up with relevant developments. The employee benefits attorneys at Stinson Leonard Street provide human resources professionals, plan fiduciaries, actuaries, accountants, and others in the industry with practical and cost-effective assistance as they navigate through the complex laws, regulations and guidance that govern employee benefits plans. This blog highlights key developments in the employee benefits field and items of interest to our clients. Our Bloggers →

Benefits Notes Post

Gas Prices Must be Going Down

By Angela Bohmann | December 10, 2013 in Cafeteria Plans, Payroll

Every year the IRS issues optional standard mileage rates that can be used by taxpayers to calculate the deductible cost of operating an automobile for business, charitable, medical or moving purposes. Many employers reimburse employees based on this standard mileage rate. The standard mileage rate also factors into medical expense reimbursement account plans for mileage driven for medical purposes. The IRS recently issued the 2014 rates.

Beginning January 1, 2014, the standard mileage rate for the use of a car, van, pickup or panel truck will be:

  • 56¢ per mile for business miles driven,
  • 23.5¢ per mile driven for medical or moving purposes and
  • 14¢ per mile driven for charitable purposes.

The charitable rate is based upon statute and does not change. The business, medical and moving expense rates can vary from year to year and are one-half cent lower than the 2013 rate.

The IRS bases the rates on an annual study of the fixed and variable costs of operating an automobile. Although the IRS notice does not so state, presumably the general reduction in the price of gasoline figured into the half-cent reduction in mileage for the business, medical and moving expense miles.