2009 IRS Optional Standard Mileage Rates

The Internal Revenue Service has issued the following 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2009, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be:

  • 55 cents per mile for business miles driven
  • 24 cents per mile driven for medical or moving expenses
  • 14 cents per mile driven in service of charitable organizations

The mileage rates for 2009 reflect generally higher transportation costs compared to a year ago, but the rates also factor in the recent reversal of rising gasoline prices.  While gasoline is a significant factor in the mileage rate, other fixed and variable costs, such as depreciation, enter the calculation.

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New Telecommuting Bill Passed by U.S. House of Representatives

According to legislation passed by the House of Representatives, the head of every federal agency must create a program allowing authorized employees to telecommute at least 20 percent of their work hours every two weeks. Following a growing trend of increased telecommuting in the private sector, the move will give employees the opportunity to work some hours from home saving money on gas as well as providing the employee more control over their environment. According to the Business Legal Review, over the past several years telecommuting has increased an average of 11 percent a year. In 2007 over 35 percent of jobs globally include some sort of telecommuting option.

While there are definite merits to creating a telecommuting program, there are also some pitfalls that need to be addressed to ensure its success. Providing such an option to certain employees and denying it to others for reasons such as home location and seniority can cause discontent from those unable. This can be especially dangerous in a team environment and can lead to lower morale as well as higher employee turnover.

According to Karol Rose, the five biggest telecommuting mistakes employees and employers can make are:

Top Employee Mistakes

  1. Don’t set boundaries for themselves regarding work and personal responsibilities
  2. Don’t find ways to stay physically connected to the workplace and colleagues
  3. Think they can work the same way remotely as they did in the office
  4. Underestimate the need to communicate frequently with boss regarding what’s working/not working so can be proactive
  5. Don’t do enough problem solving regarding ‘what if’ scenarios before they begin telecommuting

Top Five Employer Mistakes

  1. Think it’s not already happening
  2. Think it’s harder than it is
  3. Assume if “I can’t see you, you must not be working”
  4. Fail to understand telecommuting may require a blend of off-site and in-office face time
  5. View telecommuting only as an employee benefit; fail to see how telecommuting can benefit the business by meeting customer needs across time zones or save the company utility, real estate, and other overhead costs.

For information on setting up and running an effective employee telecommuting program visit Telework.gov or Quint Careers.

Tips To Help You Telecommute Successfully

  • Don’t work too much. Your office is so accessible that it can be tempting to work during your family time. When you finish for the day, close the door and get on with your life.
  • Make a schedule and stick to it. Try to work the same number of hours you would at the office. Make a schedule so that you work, eat, and spend time with your kids at the same time each day. This will help your family get into a routine and accept your hours.
  • Break up your work day. Take breaks, make telephone calls, spend some time with your kids. It will help you avoid feeling isolated.
  • Use a separate business line and voice mail. When the work day is over, or you are on a break, you won’t have to worry about having your phone answered in a professional manner. You can also turn off the bell on the phone after hours and check your messages in the morning.
  • Stay in the loop. Try to schedule at least one telephone call each day with your office and share the day-to-day details of your work day. Keep up with office happenings,
    e-mail associates, remember their birthdays and try to visit the office a few times each month.
  • Just say no – to overwork and to housework during your business hours.

Visit Clemson University for more information on these and other resources for telecommuting effectively.


IRS Raises Standard-Mileage-Reimbursement Starting July 1st

With gas prices climbing to record amounts this year, the IRS has decided to raise the reimbursement standard by 8 cents to 58.5 cents a mile. According to IRS Commissioner Doug Shulman, “Rising gas prices are having a major impact on individual Americans. Given the increase in prices, the IRS is adjusting the standard mileage rates to better reflect the real cost of operating an automobile, we want the reimbursement rate to be fair to taxpayers”. This adjustment will come into effect on July 1st of this year and is scheduled to run until December when the situation will be reevaluated.

Workers who use their vehicles for business are able to use either the standard mileage rate, or deduct the actual expense on their tax returns. Many private employers, and the federal government, use the IRS rate to reimburse workers. The IRS includes additional factors such as depreciation and cost of insurance when determining the rate. While the IRS typically adjusts the rate in the fall of each year for the following year, the dramatic increase in prices over the past few months prompted a special adjustment to be made. According to the AAA, nationwide average for a gallon of regular gas is at $4.07, up more than a dollar from $2.98 a year ago. In addition to raising the standard business mileage rate, the IRS also announced they would be making a similar 8 cent adjustment to the mileage rate or deductible medical or moving expenses making the new rate 27 cent per mile.

Tips for better gas mileage:

-Check tire pressure monthly
-Keep your car well serviced and check the oil level regularly
-Avoid hard braking or accelerating
-Use air conditioning only when necessary
-Remove extra unnecessary weight from your trunk or backseats
-Drive with the windows up when at high speeds and remove roof racks when not in use
-Use mass transit when possible, and consider looking into a ride-share or carpool service

Visit Savemorethanfuel to learn more about these and other initiatives.

In a new effort to lower gas emissions and save money for motorists at the pump, members of the European Union Energy commission have begun a public service campaign discussing such techniques. Over the next few months over 30 million pamphlets will be handed out in an effort to educate drivers on eco-friendly driving. In trials at the eco driving school, drivers cut their fuel consumption from 7.3 liters per 100 kilometers to 5 liters. This would save drivers about $800 per 15,000 km driven.