IRS Increases Standard Mileage Rates for Last Half of 2022 For Phillips 66 Employees

Company Name For plan years beginning in Year Month First Segment Second Segment Third Segment Plan Type
Phillips 66 All 2025 January 4.74% 5.55% 5.92%
Phillips 66 All 2024 January 4.89% 5.14% 5.29%

Due to recent increases in the price of fuel, the IRS has increased the optional standard mileage rates for computing the deductible costs of operating an automobile for business, medical, and moving expense purposes for the second half of 2022. The standard mileage rate for computing the deductible costs of operating an automobile for charitable purposes is set by statute and remains unchanged.

For July 1, 2022, to December 31, 2022, the standard mileage rates are as follows:

  • Business use of auto : Our Phillips 66 clients may find this particularly beneficial. 62.5 cents per mile (up from 58.5 cents for January 1, 2022, to June 30, 2022) may be deducted if an auto is used for business purposes. As a Phillips 66 employee, your employer from Phillips 66 may reimburse you for your business travel expenses using the standard mileage rate. However, if Phillips 66 does not reimburse you for your business travel expenses, you cannot currently deduct your unreimbursed travel expenses as miscellaneous itemized deductions.

  • Charitable use of auto : 14 cents per mile (the same as for January 1, 2022, to June 30, 2022) may be deducted if an auto is used to provide services to a charitable organization if you itemize deductions on your income tax return. We'd like our clients from Phillips 66 to note that your charitable deduction may be limited to certain percentages of your adjusted gross income, depending on the type of charity.

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  • Medical use of auto : 22 cents per mile (up from 18 cents for January 1, 2022, to June 30, 2022) may be deducted if an auto is used to obtain medical care (or for other deductible medical reasons) if you itemize deductions on your income tax return. It's also important that our Phillips 66 clients note that you can deduct only the part of your medical and dental expenses that exceed 7.5% of the amount of your adjusted gross income.

  • Moving expense : 22 cents per mile (up from 18 cents for January 1, 2022, to June 30, 2022) may be deducted if an auto is used by a member of the Armed Forces on active duty to move, pursuant to a military order, to a permanent change of station (unless such expenses are reimbursed). The deduction for moving expenses is not currently available for other taxpayers.

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    The IRS normally updates the standard mileage rates once a year in the fall for the next calendar year. Mid-year increases in the standard mileage rates are rare — the last time the IRS made such an increase was in 2011.

    What is the 401(k) plan offered by Phillips 66?

    The 401(k) plan offered by Phillips 66 is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are deducted.

    How does Phillips 66 match employee contributions to the 401(k) plan?

    Phillips 66 offers a matching contribution to the 401(k) plan, which typically matches a percentage of the employee's contributions up to a certain limit.

    When can employees at Phillips 66 enroll in the 401(k) plan?

    Employees at Phillips 66 can enroll in the 401(k) plan during their initial eligibility period, which is typically within 30 days of their hire date.

    What types of investment options are available in the Phillips 66 401(k) plan?

    The Phillips 66 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

    Can Phillips 66 employees take loans against their 401(k) savings?

    Yes, Phillips 66 employees may have the option to take loans against their 401(k) savings, subject to the plan's terms and conditions.

    What is the vesting schedule for Phillips 66's 401(k) matching contributions?

    The vesting schedule for Phillips 66's 401(k) matching contributions typically follows a graded schedule, meaning employees earn rights to the match over a period of time.

    How can Phillips 66 employees access their 401(k) account information?

    Phillips 66 employees can access their 401(k) account information through the company's benefits portal or by contacting the plan administrator.

    What happens to a Phillips 66 employee's 401(k) if they leave the company?

    If a Phillips 66 employee leaves the company, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the Phillips 66 plan if eligible.

    Are there any fees associated with the Phillips 66 401(k) plan?

    Yes, there may be fees associated with the Phillips 66 401(k) plan, including administrative fees and investment management fees, which are disclosed in the plan documents.

    Can Phillips 66 employees change their contribution percentage to the 401(k) plan?

    Yes, Phillips 66 employees can change their contribution percentage to the 401(k) plan at certain times throughout the year, typically during open enrollment or at designated times.

    With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
    Phillips 66 offers multiple pension plans, including a traditional defined benefit plan for employees hired before April 1, 2013, and a cash balance plan for those hired after this date. The defined benefit plan calculates retirement benefits based on years of service and final average pay. The cash balance plan credits a percentage of the employee's salary annually to an account that grows with interest. Additionally, Phillips 66 provides a 401(k) savings plan with company matching contributions to enhance retirement savings. Employees can manage their retirement accounts through the Vanguard platform.
    Operational Changes: Phillips 66 is restructuring its business to focus more on its core refining and petrochemicals segments, leading to layoffs affecting around 1,500 employees (Source: Bloomberg). Strategic Initiatives: The company aims to enhance operational efficiency and reduce costs. Financial Performance: Phillips 66 reported a 10% increase in net sales for Q3 2023, driven by strong demand for its refining products (Source: Phillips 66).
    Phillips 66 includes RSUs in its compensation packages, vesting over a specific period and converting into shares. Stock options are also provided, enabling employees to buy shares at a predetermined price.
    Phillips 66 has actively enhanced its employee healthcare benefits to align with the current economic, investment, tax, and political environment. In 2022, the company introduced comprehensive health and wellness programs designed to support the overall well-being of its employees. These programs include a variety of medical plans, dental and vision coverage, health savings accounts, and wellness initiatives. Phillips 66 also emphasized mental health support by offering Employee Assistance Programs (EAP) and stress management resources. These benefits reflect the company's commitment to fostering a healthy and productive workforce, which is essential for maintaining high performance in a competitive market. In 2023, Phillips 66 continued to expand its healthcare offerings by integrating new digital health solutions and enhancing access to preventive care services. The company introduced virtual health services and telemedicine options, ensuring employees have convenient access to healthcare professionals. Additionally, Phillips 66 focused on financial wellness, offering programs and resources to help employees manage their finances effectively and prepare for retirement. These initiatives are part of Phillips 66's broader strategy to create a supportive and inclusive work environment, which is critical for attracting and retaining top talent. By investing in robust healthcare benefits, Phillips 66 aims to ensure long-term business success and resilience amid economic uncertainties.