For miles driven beginning January 1, 2013, the federal standard business rate for mileage reimbursement will be 56.5¢ per mile. Employers are not required to reimburse mileage at the federal rate. If your library does not use the federal rate, make sure that the rate is reviewed annually to provide fair reimbursement.
Any mileage reimbursement rate equal to or less than the federal rate is not subject to income tax. Any mileage reimbursed at a higher rate would require the employer to show the difference above 56.5¢ per mile as income on the individual’s 2013 W-2.
When was the last time your Library Board reviewed mileage rate reimbursement?