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While mileage reimbursement in Indiana is not mandated across all sectors, the Indiana Department of Administration (IDoA) sets the rates for state employees. These rates are adjusted according to fuel prices.
As for a private sector employer, the law does not mandate reimbursing employees for mileage rates. Yet, key Indiana codes, notably 22-3-3-6 by the Worker's Compensation Board, provide clear directives on compensating mileage for private employees too.
Aligning with these laws, even when not required, will:
- Ensure fair compensation to your employees
- Make your business comply with minimum wage regulations
Indiana business mileage reimbursement rates
In 2024, Indiana's mileage reimbursement rate for business travel is $0.49 per mile for state employees, set by the Indiana Department of Administration. As a private employer, you can also reimburse your employees at these rates.
Here's a tabulated version of the Indiana mileage reimbursement rates in 2024 alongside a year-on-year analysis.
Indiana mileage reimbursement calculator
As a private employer in Indiana, you can reimburse your employees based on the rates set by IDoA, which have been explained above. However, you can also reimburse your employees based on IRS standard mileage rates, which are tabulated below.
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.
Indiana mileage reimbursement calculator
Using the Indiana 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.
Indiana mileage reimbursement laws
As an employer in Indiana, you're expected to stay on top of the laws governing mileage reimbursement. These laws ensure you compensate your employees fairly for travel expenses incurred due to work.
Detailed in Indiana's labor codes, especially 22-3-3-6 (explained in upcoming sections), these statutes specify the conditions under which you should reimburse mileage.
Workers compensation code for mileage, 22-3-3-6
Mileage Reimbursement Code 22-3-3-6 is a crucial piece of legislation under the Indiana Workers Compensation Code. It applies to the public as well as private sectors. It mandates that you, as an employer, must:
- Reimburse your employees for mileage when they travel for medical examinations
- Compensate your employees for mileage when they travel for treatments related to a work-related injury.
This mileage compensation should be at the rate established by the Indiana Department of Administration, which for 2024 is $0.49 per business mile. It ensures consistency with state employee rates.
Remember, code §22-3-3-6 by the Workers Compensation Board applies even if your employees need to travel outside their county of employment for medical care.
Indiana minimum wage by the law
Indiana aligns with the federal minimum wage, set by the Fair Labor Standards Act (FLSA), which is $7.25 per hour.
In terms of mileage, there's no separate state minimum. However, if travel expenses like mileage drop your employee's earnings below this threshold, you need to make up the difference. This ensures that your employees' take-home pay reflects their hard work and travel commitments.
Indiana mileage reimbursement laws vs federal rules
While the federal IRS guidelines provide a standard mileage rate for reimbursement, Indiana's specific codes, like 22-3-3-6, require you to handle mileage reimbursements in detailed scenarios not covered by federal law.
For example, Indiana mandates that you cover all necessary expenses for travel, including mileage, related to medical treatment under worker's compensation, which is more encompassing than the general federal approach. This means you're not just following the law but also supporting your employees through more comprehensive policies.
Automate your mileage calculations effortlessly with Ramp
As a private Indiana employer, reimbursing employees when they use their personal vehicles for work, even though the law does not mandate it, helps in the following ways.
- Ensures your employees are treated fairly, significantly boosting their loyalty to your business.
- Reflects your commitment to fairness and transparency, leading to talent retention.
- Helps you play by the rules, ensuring you do not violate the Workers Compensation Board's Code 22-3-3-6.
- Avoids accidental reduction of your employees' wages below the federal minimum.
To streamline and simplify the mileage reimbursement process, consider using Ramp's AI-driven expense management software. Ramp’s software automates mileage tracking, reducing administrative burdens and minimizing errors.
With Ramp, you can easily calculate reimbursements based on accurate, real-time travel data, ensuring that both you and your employees are always on the same page when it comes to travel expenses.
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