Georgia mileage reimbursement rates & calculator

As a Georgia employer, understanding mileage reimbursement will help ensure fairness in your workplace. While, as a private employer, you are not mandated to offer mileage reimbursement, it's essential to know that the State Accounting Office and the Office of Planning and Budget do set the mandatory reimbursement rates for state employees. 

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When you pay your employees based on the rates for state employees or those set by the IRS, you reap the following benefits. 

• Keep your business in compliance with Georgia's Workers' Compensation Law. 
• Keep you aligned with Georgia's Minimum Wage law.

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Most importantly, reimbursing employees fairly ensures they remain loyal to your business.

Georgia business mileage reimbursement rates 

For 2024, Georgia state employees receive mileage reimbursements at $0.67 per mile for personal automobiles, as set by the State Accounting Office. However, you can also reimburse your employees based on the IRS standard rates as a private employer. 

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Here's a closer look at Georgia's year-on-year mileage reimbursement rates per the IRS.

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.

Georgia mileage reimbursement calculator

Using the Georgia 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.

Georgia mileage reimbursement laws

As a private employer in Georgia, even though it's not mandatory for you to reimburse employees for mileage, the guidelines for state employees offer a framework that can help you make your own policies, promoting fairness and consistency in employee treatment. 

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Here's a breakdown of the most critical Georgia mileage reimbursement laws and regulations and why they might be relevant to you, too.

Georgia mileage reimbursement regulations for state employees

In Georgia, state employees' mileage reimbursement is strictly regulated and adheres to the rates established by the United States General Services Administration (GSA). 

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For 2024, the mileage reimbursement rates are as follows^[1].

• When no state vehicle is available, and personal vehicles are used (Tier 1): $0.67 per mile
• When a state vehicle is available but still a personal vehicle is used (Tier 2): a reduced rate of $0.21 per mile

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These rates cover expenses such as gas, maintenance, and depreciation. 

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Please note^[2]: mileage claims paid to an employee that exceed these stipulated rates are treated as taxable income. 

Georgia workers' compensation law

Under the Workers' Compensation Law in Georgia, employees traveling for medical treatments - whether they are state employees or private employees - must be reimbursed for their mileage due to work-related injuries. 

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As a private employer, here's what this means for you. 

• Reimburse injured employees for mileage for trips to the doctor and physical therapy.
• Offer compensation for travel to pharmacy visits necessary for recovery. 

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Please note: You don't have to offer mileage reimbursement for non-authorized medical treatments. 

Georgia’s minimum wage act for mileage reimbursement

Did you know that Georgia is one of the few states in the US where the state minimum wage is less than the federal minimum wage?

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As per the Minimum Wage Act in Georgia, the state minimum is $5.15 per hour, superseded by the federal minimum wage of $7.25 per hour. However, as a private employer, you must follow the Federal Minimum Wage. 

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A few exceptions where the state wage may apply as per Title 34, Section 34-4-3, are as follows . 

• Your business's annual sale is $40,000 or less.
• You have five or fewer employees.

Automate mileage logging and tracking with Ramp

As an employer, using Georgia's established mileage reimbursement rates as per the GSA or IRS can help you develop a fair and transparent policy for reimbursing your own employees. It will help you achieve the following few things. 

• Set such reimbursement rates so your employees' minimum wage remains consistent with the federal minimum.
• Adopt fair mileage reimbursement policy that maintains the financial integrity within your organization, promoting talent retention. 

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Aligning mileage reimbursement with better compensation plans will make you an employee-friendly business. If you want to simplify your mileage reimbursement policy, Ramp can help.

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Ramp's AI expense software tracks and calculates mileage reimbursement based on Georgia's guidelines. It ensures an efficient and accurate process without errors.