// Heidi McClean // Crew Connection
If you’ve ever sent your video service providers on the road for a project, you know you’re expected to pay for every mile those video field crews drive—and all those miles add up. But in 2017, they’ll cost you just a little less.
Effective Jan. 1, standard mileage rates for using a personal vehicle for business purposes will be lower than they were in 2016. Here are the CliffsNotes on how the mileage rates decrease could affect you and your budget.
What are the new rates?
- 53.5 cents per mile driven for business purposes (down from 54 cents in 2016)
- 17 cents per mile driven for medical or moving purposes (down from 19 cents in 2016)
- 14 cents per mile driven in service of charitable organizations (the same as 2016)
As you can see, the decrease isn’t drastic. But as the miles add up, every little bit counts.
If you pay for actual costs, you should still expect to cover maintenance, insurance, and other expenses.
What contributes to changing rates?
Standard mileage rates are determined based on an annual study of the fixed and variable costs of operating an automobile. Sharply declining fuel prices contributed to this year’s drop. The decrease was relatively minimal because other expenses, such as insurance and maintenance, increased.
What do I need to know about mileage rates?
You can find all the nitty gritty details and government legalese about mileage rates and more here. In a nutshell: You’ll be paying your freelancers less for the miles they drive for business purposes in 2017.
About Crew Connection
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