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U.S. Master™ Wage-Hour Guide, 2007 Edition
Presents a first approach to the Fair Labor Standards Act (FLSA), summarizing the basic legislation, demonstrating how the rules apply to particular employment situations, and exploring practical aspects of employment arrangements in light of the federal wage and hour law.

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CCH® HR MANAGEMENT — 11/28/06

IRS announces 2007 standard mileage rates

The Internal Revenue Service issued the 2007 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, 2007, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:

• 48.5 cents per mile for business miles driven;

• 20 cents per mile driven for medical or moving purposes; and

• 14 cents per mile driven in service to a charitable organization.

The new rate for business miles compares to a rate of 44.5 cents per mile for 2006. The new rate for medical and moving purposes compares to 18 cents in 2006. The primary reasons for the higher rates were higher prices for vehicles and fuel during the year ending in October.

The standard mileage rates for business, medical and moving purposes are based on an annual study of the fixed and variable costs of operating an automobile. Runzheimer International, an independent contractor, conducted the study for the IRS. The mileage rate for charitable miles is set by statute.

For additional information on this and other HR topics, consult CCH Human Resources Management or Personnel Practices/Communications.

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