Thursday, January 4, 2024

Compensation Caps for 2024

The Office of Federal Procurement Policy (OFPP) recently published the compensation cap for 2024. The new cap is $ 646,000 and represents a 4.4 percent increase over the 2023 compensation cap of $ 619,000.  

Following are the compensation caps by year:

Prior to 2014, compensation caps were applied variously to 'top five employees in management positions', and 'all employees' depending on the year and whether the contract was awarded by DoD/NASA or a civilian agency. Also, compensation caps prior to 2014 were much higher, peaking at $1.1 million in 2014. If you still have contracts awarded prior to June 24, 2014, you should become very familiar with FAR 31.205-6(p) to ensure accurate implementation of compensation caps.

IRS Mileage Rate for 2024

 For 2024, the standard mileage rate for business will increase from 65.5 to 67 cents per mile.

The rate for medical and moving will decrease by one cent to 21 cents per mile while the rate for charitable purposes is set by statute and remains unchanged at 14 cents per mile.