As a private employer in New York, you aren't legally required to offer mileage reimbursement to employees. However, managing state employees means adhering to the New York State Comptroller's standards and Section 652 of the New York Labor Law.
That said, regardless of your business sector, the New York State Minimum Wage Act applies. Moreover, implementing fair mileage practices can help in the following ways.
- Align your business with the Living Wage Law and Wage Theft Protection Act
- Safeguard against legal issues if wages fall below the minimum
Fair mileage reimbursement will also build your reputation as a fair business and help retain a dedicated team.
New York business mileage reimbursement rates
In 2024, the business mileage reimbursement rate in New York is $0.67 per mile, which is the IRS standard.
Here's a tabulated snapshot of the IRS's current mileage reimbursement rates alongside a year-on-year rate increase analysis.
Note[1]: you have the discretion to reimburse at different rates. However, amounts exceeding the IRS rate of $0.67 per mile are taxable income in New York.
New York mileage reimbursement calculator
Using the New York 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.
New York mileage reimbursement laws
According to the New York State Comptroller's standards, state employees are reimbursed for travel expenses at rates that align with the IRS's yearly announced rates.
As a private employer, this isn't a legal obligation for you, but you must comply with the Minimum Wage Act in New York, ensuring your employees' wages never fall below the state minimum.
Understanding these key New York mileage reimbursement laws, codes, and guidelines – explained below – will help you craft a policy that keeps your business compliant.
Chapter XIII.4.C in New York state comptroller's for state employees’ mileage reimbursement
State employees in New York receive mileage reimbursement for travel incurred during official duties, aligned with IRS and U.S General Services Administration (GSA) guidelines. The current mileage reimbursement rate is $0.67 per mile for 2024, as per Chapter XIII.4.C.
To streamline the reimbursement process and maintain tax compliance, implement two distinct expense lines.
- Use the standard mileage expense line to reimburse at the IRS-approved non-taxable rate of $0.67 per mile.
- Use the supplemental mileage expense line to address any additional mileage exceeding the standard IRS rate which is taxable.
New York minimum wage act for mileage reimbursement
Under Section 652 of the New York Labor Law, there's no explicit mandate for you as a private employer to reimburse mileage. Nevertheless, total compensation, including mileage, must not fall below the hourly minimum wage of $16 in most New York regions.
It's also worth noting that minimum wage rates in New York can vary by region, as the table below shows.
Living wage law and wage theft protection act
Adhering to these two regulations is not related to mileage reimbursement directly but it safeguards your business from legal issues.
The Living Wage Law in New York City requires a minimum pay rate above the federal standard, set at $16.00 per hour, with a health benefit supplement in 2024.
The Wage Theft Protection Act demands transparency in wage calculations. Inadequate reimbursement, resulting in wages falling below the required minimum when considering hours worked, could be viewed as wage theft under this act.
Simplify your mileage tracking and reimbursement with Ramp
New York aligns its state employee mileage reimbursement rates with IRS standards but does not bind you as a private employer to these figures. However, adherence to IRS rates can ensure compliance with state minimum wage laws, safeguarding against under-compensation claims and potential legal issues.
Compliance with the New York mileage reimbursement laws and guidelines also helps with employee retention by ensuring fair compensation for work-related travel.
Want to streamline and simplify your business's mileage reimbursement process? With Ramp, you can automate the entire process, ensuring accuracy and compliance with state laws.
Our expense management software simplifies record-keeping, automatically calculates reimbursements at the correct rates, and provides clear, auditable trails. With Ramp, you can save time and eliminate mileage logging errors.
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[1] 'Header section: Overview & Policies': https://www.osc.ny.gov/state-agencies/gfo/chapter-xiii/xiii4c-travel-mileage-rates