Federal Mileage Reimbursement Rate to Rise

The Federal mileage reimbursement rate is scheduled to rise to 50.5 cents per mile. This rate is generally used by nanny employers to reimburse their nannies for the business use of their personal vehicle. These nannies will often use their own car to drop off/pick up their charges from preschool, enrichment activities, and sports activities. Nannies also will use their vehicle for family grocery shopping and other errands.

The new, higher reimbursement rate will become effective January 1, 2008.