How much money will you save now that mileage rates have decreased?
You love your freelancers because they go the extra mile. Now that extra mile is going to cost you less.
Effective Jan. 1, standard mileage rates for using a personal vehicle for business purposes will be just a little lower than they were in 2016. Here are the CliffsNotes on how the mileage rates decrease could affect you and your budget.
What’s the new breakdown?
- 53.5 cents per mile driven for business purposes (down from 54 cents in 2016)
- 17 cents per mile driven for medical or moving purposes (down from 19 cents for 2016)
- 14 cents per mile driven in service of charitable organizations (the same as 2016)
As you can see, the decrease isn’t drastic. But as the miles add up, every little bit counts.
If you pay your freelancers for actual costs, you should still expect to cover maintenance, insurance, and other expenses.
How are standard mileage rates determined?
Standard mileage rates are determined based on an annual study of the fixed and variable costs of operating an automobile. Sharply declining fuel prices contributed to this year’s drop. The decrease was relatively minimal because other expenses, such as insurance and maintenance, increased.
What do I need to know about mileage rates?
You can find all the nitty gritty details and government legalese about mileage rates and more here. In a nutshell: You’ll be paying your freelancers less for the miles they drive for business purposes in 2017.
Producing multimedia content and executing live events is chaotic. At PayReel, we make sure our clients are able to hire who they want, when they want and that everyone is paid properly. Leave the details up to the PayReel team so you can focus on pulling off a flawless production. Contact us anytime at 303-526-4900 or by emailing us here.
Relax. We got it.