Mileage Matters: The IRS Rate You Need to Know
Prepare to adjust your books! Effective January 1, 2025, the IRS standard mileage reimbursement rate increases to 70 cents per mile for business use (up from 67 cents in 2024). This rate applies across the board, including electric and hybrid vehicles.
While optional, this rate is the go-to for many businesses to calculate reimbursements for employees using personal vehicles for work. If your business follows the IRS standard, updating your systems now will save time—and ensure you remain compliant.
Extended EADs: What Employers Should Expect
The Department of Homeland Security has announced a permanent change that impacts EAD (Employment Authorization Document) renewals. Starting January 13, 2025, the automatic extension period for EAD renewals will officially stretch to 540 days—a rule that has been temporarily in effect since 2022.
This extension helps bridge processing delays and grants certain employees more time to maintain work authorization. Make sure your payroll and HR systems reflect this update to avoid interruptions in your workforce management.
Compliance is key to keeping federal partnerships intact
Federal Contractor Minimum Wage Adjustments
Big changes are coming for businesses handling federal contracts. Depending on the contract type, the minimum wage will increase as follows:
Contracts Under Executive Order 13658:
Minimum wage rises to $13.30 per hour, while the base wage for tipped employees jumps to $9.30 per hour.
Contracts Under Executive Order 14026:
Minimum wage will increase to $17.75 per hour for both tipped and non-tipped employees.
If your business is a federal contractor, review the Department of Labor’s FAQs and ensure your payroll systems are ready to implement these changes on January 1, 2025.
Compliance is key to keeping federal partnerships intact.
How USS Accounting Can Help You Stay Ahead
With so many changes on the horizon, staying proactive is crucial. USS Accounting specializes in ensuring small businesses are not only compliant but positioned for growth. From payroll updates to reimbursement tracking, we’ve got you covered.
Let’s make 2025 your most profitable year yet. Book a free consultation today to get started.
