Maryland mileage reimbursement rates & calculator

Did you know that the mileage reimbursement rate for state employees in Maryland, which is 67 cents per mile, is a standard practice set annually by the Workers' Compensation Commission? While mileage reimbursement is not compulsory for you as a private employer, doing so is a great business strategy. 

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Moreover, under Maryland's Workers' Compensation Law, mileage reimbursement becomes mandatory irrespective of the sector - public or private. Embracing these practices also helps with the following goals. 

• Cover employee travel expenses to enhance job satisfaction.
• Implement fair mileage reimbursement rates to boost employee satisfaction. 
• Ensure compliance with Maryland's Minimum Wage Law. 

Maryland business mileage reimbursement rates 

In 2024, you should be reimbursing your employees in Maryland at the same rate at which state employees are compensated, $0.67 per mile for business-related travel. 

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Here's a table demonstrating a year-on-year mileage reimbursement rate analysis in Maryland.

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.

Maryland mileage reimbursement calculator

Using the Maryland 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.

Maryland mileage reimbursement laws

In Maryland, mileage reimbursement laws for state employees are well-defined. The state sets an annual standard mileage rate, which for 2024 is $0.67 per mile. However, for you as a private employer in Maryland, adhering to this rate isn't mandatory. 

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Explore all critical Maryland mileage reimbursement rates below.

Mileage reimbursement for state employees 

When state vehicles are available, Maryland encourages their use by offering a reduced reimbursement rate for employees who still opt to use their personal vehicles. Such employees are reimbursed at half the standard rate of $0.67 per mile, which is $0.335. 

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If you're managing state employees, it's also worth noting that the Maryland mileage reimbursement rate includes the cost of vehicle insurance^[1]. Hence, you don't have to cover any additional insurance costs that arise from using a private vehicle for state business.

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Having said that, know that mileage reimbursement doesn't have to be provided for regular commutes between home and assigned offices.

Workers' compensation act and mileage reimbursement

This law applies to all you private employers. 

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When injured employees travel to and from medical treatments related to the compensable injury, the state's Workers' Compensation Law mandates that you offer them mileage reimbursement. 

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In fact, the Workers' Compensation Commission has set this rate to $0.67 per mile. This adjustment reflects Maryland's recognition of these miles as akin to business miles traveled because of the work-related nature of the injuries.

Maryland Minimum Wage Act 

The Minimum Wage Act in Maryland does not explicitly mandate that you should reimburse your employees for mileage. Instead, it ensures your employees are paid fairly for their work hours so that out-of-pocket expenses never drop their wages below the state minimum. Clearly, it's indirectly related to mileage reimbursement. 

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The state-wide minimum wage in most of Maryland is $15 per hour. However, there's a slight variation in the minimum wages in Montgomery and Howard counties.  

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Montgomery county rates, 2024

• Employers with 51 or more employees: $17.15 per hour 
• Employers with 11 to 50 employees: $15.50 per hour
• Employers with 10 or fewer employees: $15 per hour

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Howard county rates, 2024

• Employers with 15 or more employees: $15 per hour 
• Employers with fewer than 15 employees: $15.50 per hour

Switch to Ramp for automated mileage tracking

In Maryland, the state has set a clear mileage reimbursement rate of $0.67 per mile for state employees in 2024. As a private employer, aligning your company's mileage reimbursement policies with these state standards can offer the following advantages. 

• Ensure compliance with local regulations, which can prevent potential legal issues
• Reinforce trust among your employees, showing that your business values their welfare.

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To streamline and simplify your mileage reimbursement processes, consider using Ramp. Ramp's advanced AI-driven expense management solution automates the recording and reporting of mileage, ensuring accuracy. 

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By integrating Ramp, you can eliminate manual tracking errors, reduce administrative overhead, and ensure that reimbursements are prompt and compliant.