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IRS Standard Mileage Rates for 2024

Beginning January 1, 2024, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be:

  • 67 cents per mile driven for business use (up 1.5 cents from 2023).
  • 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces (a decrease of 1 cent from 2023).
  • 14 cents per mile driven in service of charitable organizations (same as the 2023 rate).

Standard mileage rates are used to calculate the deductible costs of operating a car for business, charitable, medical, or moving purposes. The rates apply to vehicles that are electric, hybrid-electric, gas, and diesel-powered.

Use of this rate is optional, though it’s widely accepted as an easy and standard reimbursement rate for employees who use their personal vehicle for work.

The Federal Department of Labor Reinstates Longstanding Independent Contractor Test

The U.S. Department of Labor (DOL) has published a final rule for independent contractor classification under the federal Fair Labor Standards Act (FLSA). Beginning on March 11, 2024, the rule will effectively reinstate the longstanding version of the “economic reality” test the DOL previously used. This test uses a multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee who is economically dependent on the employer for work, or an independent contractor (IC) who is in business for themself.

Although this version of the economic reality test hasn’t been used by the DOL for the last few years, many state agencies and courts continued to use it, and the IRS’s test for IC classification is very similar, so most employers likely did not take action to reclassify employees during the test’s brief DOL hiatus. That said, it never hurts to reevaluate your classifications. As a refresher, the economic reality test looks at the following six factors:

  • The worker’s opportunity for profit or loss
  • The relative investments by the worker and the employer
  • The degree of permanence of the work relationship
  • The nature and degree of control an employer has over the person’s work
  • Whether the work the person does is essential to the employer’s business
  • The worker’s skill and initiative

Keep in mind that some states have more stringent tests (e.g., the ABC test in California), and workers in those states will need to pass the state’s test in order to be properly classified as independent contractors.

FCRA Summary Updated

On March 20, 2023, the Consumer Financial Protection Bureau (CFPB) issued a final rule which, among other things, updates their Summary of Your Rights Under the Fair Credit Reporting Act (FCRA) and replaces the 2018 version. The summary details the major rights guaranteed under the act. For instance, employers that use a credit report to deny employment must provide the applicant with the name, address, and phone number of the agency that provided the credit report information. The final rule also makes non-substantive changes to the act to include removing outdated business references.

The final rule is effective April 19, 2023, but the mandatory compliance date is March 20, 2024.

HR Services Team
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