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The IRS recently announced a one-cent increase to the standard mileage rate for 2013.

Effective January 1, 2013, employees can be reimbursed 56.5 cents per miledriven with their personal vehicles for business purposes. The previous mileage rate had been 55.5 cents per mile since 2011.

The standard rate for miles driven for medical or moving purposes is also increasing a penny to 24 cents per mile.  The rate for miles driven for service to a charitable organization remains 14 cents per mile.

If you have contractors who use their personal vehicles for driving required in their contract assignments, they can be reimbursed for the miles they drive.FoxHire® Contracting uses the IRS’ standard mileage rates when reimbursing contractors.

Contractors working for back-offices that do not reimburse mileage can typically claim the reimbursement on their income tax returns.  Whether they are reimbursed by a back-office or through the IRS, though, it is important that they make note of the dates, miles, and destinations for which they are requesting reimbursement.

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