Over the last few weeks I have noticed that the streets and parking lots are starting to see more activity. As we start to make our way back to “the normal”, and you are sending your staff out to work on your behalf, make sure you have implemented the rate changes that happened on January 1, 2021 regarding mileage reimbursement and per diem! (Hint, put a reminder on your calendar now to check this at the end of each year!)
If you already saw the change and updated your policies accordingly, you get an A for the day. If you haven’t, make sure to update this today especially since some rates went down from 2020.
THE QUICK AND DIRTY SUMMARY
The new standard mileage rates for the use of a car (also vans, pickups or panel trucks) are:
- 56 cents per mile driven for business use, down 1.5 cents from the rate for 2020,
- 16 cents per mile driven for medical, or moving purposes for qualified active duty members of the Armed Forces, down 1 cent from the rate for 2020, and
- 14 cents per mile driven in service of charitable organizations, the rate is set by statute and remains unchanged from 2020.
As usual, the issue of usage of vehicles and reimbursements has more complex issues that what is noted above; for the full details on the rates check out the IRS’s website for more info!
DO YOUR EMPLOYEES TRAVEL OVERNIGHT FOR BUSINESS?
If you have employees that are travelling on behalf of the company overnight or for extended stays, make sure that you are utilizing the GSA calculators to ensure you are properly compensating them for Per Diem. Not all area rates are the same and rates do change so it is best to bookmark this site and check it frequently for accuracy.
TRACKING MADE EASY!
There are plenty of apps out there that can help to track expenses including mileage. You may want to consider implementing one to help you keep timely and accurate records for proper reimbursement to your staff. Some apps worth checking out include:
QuickBooks Online – if you are using QBO it has a mileage tracker feature you can utilize. Check it out within your app or if you aren’t using QBO and are considering – check out all the features it has!
MileIQ – Accurate mileage reports. Stress-free logging. On your desktop. In the palm of your hand.
Everlance – Company Mileage & Expense Tracker.
TripLog – mileage and expense tracker for individuals & companies.