Mileage Reimbursement Rate Changes Effective January 1, 2023
On December 29, 2022, the Internal Revenue Service issued the 2023 standard mileage rates.
Accordingly, the University’s mileage reimbursement rates for expenses incurred in connection with
the business use of a private automobile will increase in accordance with the Internal Revenue
Service standard mileage rates published in IRS Notice 2023-03. The following new rates are
effective for expenses incurred on or after January 1, 2023:
- The reimbursement rate for the use of a private automobile for University business travel will increase from 62.5 cents a mile to 65.5 cents a mile.
- The reimbursement rate for driving an automobile in connection with a move or relocationwill remain the same at 22 cents a mile. (Note that reimbursements for moving- related expenses, including mileage, are considered taxable wage income as of January 1, 2018).
*Updated* Revised Guideline for Reimbursable Expenses for Remote Work
For purposes of this interim guidance, employee work status is divided into three categories – in office, hybrid and remote. These determinations are made by each location and subject to local procedures. In office and hybrid employees are not eligible for reimbursement for travel to their respective University location.
Remote employees are eligible for reimbursement for travel to their University location when University business requires their presence on site. Reimbursement is applicable if the University location is 50 miles or more from their remote work location (home office, other remote location – an approved alternative worksite). Such reimbursements for this business-related travel are not taxable to the employee if they otherwise follow the substantiation requirements in G-28. This guidance is applicable for travel beginning on or after the issuance of this letter.
Increase in Meal Rates for Business and Entertainment Expenses
Campuses have been experiencing difficulty arranging meals for events based on the existing rates for business meals and entertainment. The last time the meal rates for business and entertainment were increased was in 2016. After discussing with the campus controllers, we have elected to increase the rates by 5% in 2021 and another 5% in 2022. Effective November 1, 2021, the maximum per person amounts for the reimbursement of business and entertainment meal expenses have been revised as follows:
Breakfast $28
Lunch $49
Dinner $85
Light Refreshments $20
Additional changes will be made for 2023, review link for full details.
Revised Guideline for Reimbursable Expenses for Remote Work
Many campuses have been receiving requests from employees for reimbursements of various expenses associated with working from home during the COVID-19 pandemic. It is important to remember that generally, employees who are working from home are not considered to be on travel status as defined in Business and Finance Bulletin G-28, Travel Regulations, as “the period during which a traveler is traveling on official University business outside the vicinity of their headquarters or residence.” Because employees who are working from home are not on travel status, they are not eligible for meal reimbursement. If they have to travel to the regular office where they would normally work, that is a non-reimbursable commuting expense.
Mileage Reimbursement Rate Changes Effective January 1, 2022
The University’s mileage reimbursement rates for expenses incurred in connection with the business use of a private automobile will increase in accordance with the Internal Revenue Service standard mileage rates published in IRS Notice 2022-03. The following new rates are effective for expenses incurred on or after January 1, 2022:
• The reimbursement rate for the use of a private automobile for University business travel will
increase from 56 cents a mile to 58.5 cents a mile.
• The reimbursement rate for driving an automobile in connection with a move or relocation will
increase from 16 cents a mile to 18 cents a mile. (Note that reimbursements for moving- related
expenses, including mileage, are considered taxable wage income as of January 1, 2018).
