Arkansas mileage reimbursement rates & calculator

When it comes to mileage reimbursement in Arkansas, it's all about covering your employees' travel costs when they use their personal vehicle for work. This reimbursement is mandatory for state employees as detailed under the Arkansas Code § 19-4-904.

For you, as a private employer, offering mileage reimbursement isn't legally necessary. However, providing it's still a great way to show support for your team. 

More importantly, in the case of a work-related injury, Arkansas Code § 11-9-206 makes sure injured workers get reimbursed for their travel to medical appointments. This is not optional for you as a private employer – it's the law.

Arkansas business mileage reimbursement rates 

For 2024, Arkansas sets the mileage reimbursement rate at 67 cents per mile for state employees. The Chief Fiscal Officer determines this rate each year under the IRS mileage reimbursement rates. 

You aren't legally required to follow this rate if you're a private employer. However, offering mileage reimbursement to your employees can be a good move to help cover their travel costs.

Here's an overview of IRS mileage reimbursement rates that Arkansas has followed over the years.

Tax Year Business rate Charitable rate Medical/ moving rate
2024 $0.67 $0.14 $0.21
2023 $0.655 $0.14 $0.22
2022
(Jul 1 to Dec 31)
$0.625 $0.14 $0.22
2022
(Jan 1 to Jun 30)
$0.585 $0.14 $0.18
2021 $0.56 $0.14 $0.16
2020 $0.575 $0.14 $0.17

Please note: You may reimburse your employees at rates above or below the IRS standard. However, any excess reimbursement over the IRS rate is subject to taxation as income.

Arkansas mileage reimbursement calculator

Using the Arkansas mileage reimbursement calculator is straightforward. 

  • Choose the tax year for which you want to calculate.
  • Input the miles driven to determine how much money can be received in return.
Business miles driven
Charitable miles driven
Medical / moving miles driven
Total Deduction: 
Total Miles: 

Arkansas mileage reimbursement laws

When it comes to mileage reimbursement in Arkansas, there are some fundamental laws you need to know. Arkansas Code §19-4-904 spells out the rules for state employees - they must be reimbursed at rates set by the Chief Fiscal Officer. 

However, if you're running a private business, there's no legal requirement to offer mileage reimbursement, but Arkansas Code §11-9-206 requires you to reimburse injured employees for travel to medical appointments. 

Here's a detailed breakdown of Arkansas' most important mileage reimbursement laws. 

Arkansas code §19-4-904 for state employees' mileage reimbursement

For state employees, Arkansas Code §19-4-904[1] governs mileage reimbursement, requiring employees traveling for work in their private vehicles to be reimbursed at 67 cents per mile in 2024. The reimbursement is based on the shortest major highway route between the official station and the destination. 

While the state covers mileage, it does not cover maintenance or operational costs for private vehicles. 

Code §11-9-206 of Arkansas workers' compensation act for mileage reimbursement

Code §11-9-206 of Arkansas Workers' Compensation Law mandates that you cover mileage for employees traveling for medical care due to work-related injuries. It applies to all sectors and requires Workers' Compensation Insurance if you have three or more employees[2]

Here's what's expected of you as an employer after an injury occurs. 

  • Report injuries promptly
  • Cooperate with your insurance carrier to process reimbursements and medical expenses

Failure to comply can result in significant fines and penalties for your business. 

Arkansas minimum wage act and its implications for mileage reimbursement

The Arkansas Minimum Wage Act doesn't directly mandate mileage reimbursement, but it plays a crucial role in ensuring fair compensation for your employees. The Act, which requires a minimum wage of $11.00 per hour for non-exempt employees, ensures that workers are fairly paid for their time. 

You must understand that while the law doesn't specifically enforce mileage reimbursement, providing it can guarantee that the minimum wages of your employees will not fall below the state minimum.

Arkansas mileage reimbursement rules vs federal guidelines

There are some key differences between Arkansas and federal mileage reimbursement laws. While the IRS sets a standard mileage rate for tax purposes, Arkansas determines its rate for state employees through the Chief Fiscal Officer. 

Additionally, federal law doesn't mandate mileage reimbursement for private employers unless state laws specify, making Arkansas laws more specific in areas like Workers' Compensation for injured staff. 

Let Ramp automate and streamline your mileage tracking

Mileage reimbursement laws in Arkansas ensure your employees are fairly compensated for their work-related travel, like state employees under Arkansas Code §19-4-904 or injured workers covered by Arkansas Code §11-9-206. 

Proper reimbursement practices benefit everyone in many ways, as listed below.

  • Reduce financial strain on your employees 
  • Ensure your business remains compliant with the laws in Arkansas
  • Create a more positive work environment, increasing talent retention 

With Ramp, you can make the entire process of mileage tracking and reimbursement quick and painless. Ramp's AI-powered expense software automates the process, ensuring that mileage is tracked accurately and reimbursements are made without delays or errors. 

By using Ramp, you can save time, reduce paperwork, and maintain compliance effortlessly while giving your employees fair compensation.

Discover how Ramp automates mileage tracking and reimbursement

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Sources:

[1] Under headers, ‘Policy 2 - Standard Reimbursements for State Employees and Officials’, ‘Policy 3 - Special Travel Authorizations’, and ‘Reimbursement for Use of Privately Owned Vehicle’: https://www.atu.edu/travel/docs/Travel%20Policy%20-%20Eff.%209-15-23%20FINAL.pdf 

[2] Under the header, ‘What employers should know’:  https://www.labor.arkansas.gov/workers-comp/awcc-about-us/basic-facts/

The content on this page is intended for informational purposes only and may not be up-to-date with current legal standards. It should not be used as a legal, tax, or accounting guidance source. For advice specific to your state and situation, consult with a professional legal, tax, or accounting advisor.