In Nevada, the law mandates standard mileage reimbursement for state employees. It ensures that state employees are compensated for the business use of their personal vehicles. While this state law does not legally bind private employers, you're still encouraged to align with it for the following reasons.
- Ensure business alignment with Workers' Compensation Regulations under the NAC Code 616C.150, which isn't optional.
- Maintain fairness for your employees, boosting their morale and your business's reputation.
More importantly, fair mileage reimbursement protects your business from accidentally violating Nevada's Minimum Wage Policy.
Nevada business mileage reimbursement rates
As of 2024, Nevada has set the mileage reimbursement rate for state employees at 67 cents per mile, aligning with the current IRS federal standard. This rate applies when state employees use their personal vehicles for state business. As a private employer, you have the flexibility to adopt this rate.
Here's a tabulated snapshot of the IRS mileage reimbursement rates 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.
Nevada mileage reimbursement calculator
Using the Nevada 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.
Nevada mileage reimbursement laws
In Nevada, state employees are entitled to a mandatory mileage reimbursement. While you, as a private employer, are not obligated to reimburse, there's still the matter of the Workers' Compensation Law, which is not optional.
Under NAC 616C.150, you must reimburse for mileage under certain conditions if an employee is injured at work.
Explore the ins and outs of these and all other crucial mileage reimbursement laws in Nevada to ensure you do not rub the law the wrong way.
Mileage reimbursement regulations for state employees in Nevada
As you know, mileage reimbursement is mandatory for state employees, and the standard rate is set at 67 cents per mile. However, the law also mentions that if any state employee opts to use a personal vehicle over available state vehicles for personal convenience, the reimbursement rate is halved to approximately 33.5 cents per mile.
Code NAC 616C.150 of the workers' compensation law for mileage reimbursement
Under Nevada's Code NAC 616C.150[1] of the Workers’ Compensation Law, irrespective of the sector – private or public – you have specific obligations to reimburse for mileage when your employees are injured at work and need to travel for medical care, rehabilitation, or legal hearings related to their claims.
This regulation mandates that you do the following.
- Designate a medical professional, as your employees cannot choose their doctor for work-related injuries.
- Reimburse for transportation to medical facilities if travel exceeds 20 miles one way from home or work.
- Provide fair reimbursement for travel over 40 miles in a week for ongoing treatment.
- Reimburse your employees at the state employee per diem rate or actual costs, whichever is less, for overnight stays involving travel of 50 miles or more one way.
Please note: Under Nevada's Code NAC 616C.150, if your employee has violated safety rules, such as not wearing a seatbelt during travel for work-related purposes, their compensation could be reduced by up to 30%.
Nevada's minimum wage act and its impact on mileage reimbursement
With the increase of Nevada's minimum wage to $12 per hour effective July 1, 2024, there are consequential changes to how overtime and, thus, mileage may be calculated for employees earning near this wage threshold.
You need to be aware of this adjustment in the wage structure as it could influence decisions on reimbursements for travel, especially in cases where employees are earning close to the new minimum wage.
Let Ramp automate your mileage tracking
Sticking to Nevada's mileage reimbursement laws is essential even though you are not mandated to follow them as a private employer. It will help your business in many ways, as listed below.
- Maintain compliance with the Workers' Compensation Act.
- Establish a trustworthy relationship with your employees.
- Build your business's reputation, ensuring profits for you in return.
Want to simplify the mileage reimbursement aspect of your business – Ramp can significantly help. Ramp's AI-powered expense software automates mileage tracking and reimbursement, eliminating manual processes and reducing errors.
By using Ramp's software, you can ensure accurate and timely reimbursements, streamline your administrative tasks, and maintain clear records for compliance and auditing.
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[1] Under the header, ‘NAC 616C.150 Eligibility and computation’: https://www.leg.state.nv.us/NAC/NAC-616C.html#NAC616CSec150