Montana mileage reimbursement rates & calculator

Mileage reimbursement is all about compensating employees for using their personal vehicles for work-related tasks. In Montana, state employees are reimbursed according to statute MCA 2-18-503, which details specific rates and conditions. 

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However, following statute 2-18-503 is not mandatory for you as a private employer. You have no legal obligation to reimburse your employees, but doing so can offer great benefits. 

• Ensure your employees trust you to compensate them fairly.
• Keep your business in sync with Montana’s Minimum Wage Law.

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More importantly, as per Code 24.29.1409 of Montana's Workers' Compensation Act, you are legally mandated to cover travel expenses, including mileage, of injured employees. 

Montana business mileage reimbursement rates 

For 2024, the mileage reimbursement in Montana, set by the IRS, is 67 cents ($0.67) per mile for business use. This rate applies to state employees. As a private employer, you can choose to follow this rate or set your own policies.

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Here's a tabulated snapshot of mileage reimbursement rates in Montana as set by the IRS alongside a year-on-year rate increase analysis.

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.

Montana mileage reimbursement calculator

Using the Montana 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.

Montana mileage reimbursement laws

Montana's mileage reimbursement laws encompass several key areas, each impacting different groups of individuals. 

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This section has a breakdown of every critical regulation for each group – state employees and injured workers. It will also walk you through the Minimum Wage Law and how it intersects with mileage reimbursement practices.

MCA 2-18-503 for state employees' mileage reimbursement

Mileage reimbursement for state employees in Montana is strictly regulated by MCA 2-18-503, with rates determined by the IRS. The current business mileage rate is 67 cents per mile, but here are some mandatory conditions. 

• Reimburse at 48.15% of the IRS rates if the state employee opts to use a personal vehicle even when government vehicles are available.  
• Drop the reimbursement rate by three cents per mile for mileage exceeding 1,000 miles within a calendar month.

Code 24.29.1409 of the workers' compensation act for injured employees

Montana's Workers' Compensation Act is not optional for any sector – it applies to you, too, as a private employer. As per Code 24.29.1409 of this act, you are legally responsible for covering injured employees' travel expenses, including mileage.

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You need to offer reimbursement at the same rates as the state employees are reimbursed, which is 67 cents per mile. However, you need not provide mileage reimbursement in the following scenarios.  

• Travel to a local medical provider not approved by you or your insurance company.
• Travel where treatment is available within a 15-mile radius of the injured employee's residence. 

Montana minimum wage act and mileage reimbursement

While Montana's Minimum Wage Law primarily addresses wage payments, it does impact mileage reimbursement practices. 

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In Montana, it is your legal responsibility to offer mileage reimbursement if non-reimbursement is bringing the hourly wages of your employees below the state minimum of $10.30 per hour. 

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As per this law, you must also follow the specific guidelines listed below. 

• Reimburse your employees for all "hours worked," encompassing preparation time, business travel, meetings, and training.
• Exclude tips from minimum wage calculations.

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Please note: If your business is not covered by the Fair Labor Standards Act (FLSA) and has gross annual sales of $110,000 or less, you can pay a lower rate of $4.00 per hour. However, if your employee's work involves interstate commerce, you must pay at least the higher of the federal or Montana minimum wage.

Streamline mileage logging through automation with Ramp

In Montana, adhering to mileage reimbursement laws is vital. The magic begins when you offer fair mileage reimbursement to your employees as it can help in many ways. 

• Make your team stress-free, as they will not pay for mileage from their pockets for using personal vehicles to carry out office chores.
• Keep your team happy and motivated, boosting their productivity.  
• Increase your profit and sales, as happy employees tend to perform better.
• Ensure you do not violate Montana's Minimum Wage Law and Workers' Comp Act even accidentally.

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And guess what? Using Ramp can streamline the entire mileage reimbursement process for your business. Ramp's AI-powered expense management software automates mileage tracking and expense reporting. 

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With Ramp's software, you can effortlessly record miles, calculate reimbursements, and ensure compliance with Montana's mileage reimbursement laws.