Publications

• 30 Second Ideas
• Accounting Updates
• Alerts
• Articles
• Business Surveys
• Construction Edge
• Healthcare Edge
• Insurance Edge
• Legal Talent
• Manufacturing Edge
• Not-for-Profit Edge
• Quick Links & Good Ideas
• SEC Edge
• Strategy Insights Blog
• Surviving the Upturn
• Tax Highlights

Drop in Mileage Rate for 2009

The standard mileage rate for business travel dropped to 55 cents for 2009. This is a 3.5 cent decrease from 2008. This change will have tax consequences for both employers and employees if the mileage allowance continues to be reimbursed at the higher rate.

Normally, mileage allowance reimbursements to employees are tax-free as long as the reimbursement does not exceed the IRS-approved standard mileage rate. After December 31, 2008, any mileage reimbursement exceeding 55 cents per mile is treated as additional compensation to the employee and is therefore subject to income and payroll tax withholding.

For more information, please contact Kira Wheat at 312-980-3331 or your Blackman Kallick representative.

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.