Poll: Has Your Organization Changed Their Mileage Reimbursement Practices Due to The Tax Cuts and Job Act?

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In our last edition of Inside HR, we asked organizations if they have changed their mileage reimbursement practices due to the Tax Cuts and Jobs Act (TCJA), which eliminated the ability for employees to claim unreimbursed expenses as itemized deductions from 2018 through 2025.

Although we had a low response rate, the vast majority of respondents indicated they have reimbursed, and will continue to reimburse at the current IRS rate. A few respondents indicated they reimburse slightly lower than the current IRS rate.

Has your organization changed their mileage reimbursement practices due to the Tax Cuts and Job Act, which eliminated the ability for employees to claim unreimbursed expenses as itemized deductions from 2018 through 2025?

 

Poll Mileage Reimbursement Inside HR Jan 2019

4% Yes, we now reimburse employees at the IRS standard mileage rate.
0% Yes, we now calculate actual vehicle costs and reimburse employees.
86% No, because we reimburse employees at the IRS standard mileage rate.
0% No, because we reimburse employees by calculating actual vehicle costs.
0% No, we do not reimburse any mileage expenses to employees.
11% Other

Since the TCJA suspends the deduction for unreimbursed employee expenses, such as travel, until 2026, it was thought that employers might change their practices so employees wouldn’t feel the effects of a lost tax deduction. However, according to our poll, it appears this won’t affect most employees as they are already reimbursed for mileage (outside of normal commuting) based on the current IRS rate.

Thank you to everyone who participated in our poll!

Source: MRA - The Management Association