Mileage reimbursement is a crucial factor to consider when your employees use their personal vehicles for work-related purposes. In Louisiana, state employees are reimbursed for travel at 67 cents per mile. This is governed by L.R.S. - 23:1203D, ensuring reimbursement aligns with state business rates.
While mileage reimbursement isn't mandatory for you as a private employer, doing so is crucial – and a legal mandate – under Louisiana Workers' Compensation Law.
Here are some other benefits of offering mileage reimbursement.
- Keep your business in sync with the Federal Minimum Wage Law.
- Cover the travel costs of your employees, making them feel valued.
Louisiana business mileage reimbursement rates
Louisiana's mileage reimbursement rate for 2024 is 67 cents per mile. This rate, set by the Louisiana Department of Administration, applies to state employees using their personal vehicles for work-related travel. As a private employer, you can choose to adopt the state's rate as a fair way to cover employees' business travel costs.
Here's a tabulated snapshot of IRS-set mileage reimbursement rates Louisiana has closely followed over the years.
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.
Louisiana mileage reimbursement calculator
Using the Louisiana mileage reimbursement calculator is simple.
- Choose the tax year for which you want to calculate.
- Input the miles driven to determine how much money can be received in return.
Louisiana mileage reimbursement laws
Louisiana has specific laws and policies regarding mileage reimbursement, particularly for state employees and injured workers. The law governing state employee reimbursement is laid out in L.R.S. 23:1203D.
As a private employer, you are not legally bound to follow this statute, except when it comes to compensating your employees under Louisiana's Workers' Compensation Act.
The sections below will break down the most relevant laws you should be aware of as an employer.
L.R.S. 23:1203D for state employees' mileage reimbursement[1]
In Louisiana, state employees are reimbursed for using their personal vehicles at a rate of 67 cents per mile, established by the Louisiana Department of Administration.
This reimbursement is required for state business travel and covers the total distance traveled.
As per L.R.S. 23:1203D, here's what the state does for its employees.
- Allows a mileage reimbursement of up to 900 miles before special permission is needed for further travel costs, particularly for out-of-state travel.
- Grants special approvals for a vehicle allowance if state employees regularly use their personal vehicles for agency business.
- Computes mileage reimbursement using actual odometer readings or website mileage calculators.
Code §1203 of Louisiana workers' compensation law for mileage reimbursement
When it comes to injured workers, mileage reimbursement is a non-negotiable legal requirement, regardless of the sector – private or public.
As per Code §1203 of the Workers' Compensation Act in Louisiana, you must reimburse your employees for mileage incurred when they travel to medical appointments related to their injury, which includes:
- Trips to doctors, physical therapy, and pharmacies.
- Travel to vocational rehabilitation centers.
The current reimbursement rate for injured employees mirrors that of state employees - 67 cents per mile in 2024.
Louisiana minimum wage and mileage reimbursement
Louisiana follows the Federal Minimum Wage of $7.25 per hour in 2024, and this standard plays an indirect role in mileage reimbursement.
Here's what this means – covering employees' travel expenses can help ensure that the minimum hourly wage of low-wage workers never falls below the federal minimum when employees use their personal vehicles for business purposes.
Upgrade to automated mileage tracking with Ramp
Mileage reimbursement laws in Louisiana ensure that employees are fairly compensated for using their personal vehicles for work. Whether it's state employees being reimbursed at 67 cents per mile or you're handling Workers' Compensation Claims, following these laws is crucial for compliance.
Proper mileage reimbursement is a win-win situation with many benefits, as listed below.
- Offer financial relief to your employees.
- Build trust amongst your employees, boosting their performance.
- Ensure legal compliance with the Workers' Compensation Act in Louisiana.
Fair reimbursement ensures employees feel valued. This is where Ramp comes in. Ramp's AI-powered expense management system simplifies your mileage reimbursement process by automating the tracking and reporting, so you don't have to worry about manual errors or wasted time.
With Ramp, you ensure every mile is accounted for accurately and promptly, keeping your business and employees happy.
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[1] Under the header, 'E. Personally Owned Vehicles': https://doa.louisiana.gov/media/gdrhicmc/ppm49-2024-07-01-final.pdf