North Dakota mileage reimbursement rates & calculator

Mileage reimbursement can significantly affect how you manage travel expenses for your team in North Dakota. It's a must for state employees—the North Dakota Century Code 54-06-09 ensures state employees are covered for all necessary travel when using personal motor vehicles for business work. 

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However, as a private employer, offering mileage reimbursement is not mandated for you. But doing so will help in the following ways.  

• Keep you compliant with the Minimum Wage Law in North Dakota
• Maintain fairness and morale within your team. 

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Most importantly, adhering to proper mileage reimbursement practices will help align your business with Code 65-05-28 of North Dakota's Workers' Comp Act. 

North Dakota business mileage reimbursement rates 

For 2024, North Dakota adheres to the IRS mileage rate of $0.67 per mile for state employees traveling within a 300-mile radius of the state's border. For distances beyond this, a reduced rate of $0.18 per mile applies, aiming to effectively manage the costs of longer journeys.

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Here's a tabulated snapshot of IRS reimbursement rates that North Dakota follows alongside a year-on-year rate 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.

North Dakota mileage reimbursement calculator

Using the North Dakota 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.

North Dakota mileage reimbursement laws

North Dakota has specific regulations governing mileage reimbursement, detailed in several key labor codes. Code 54-06-09, for instance, primarily outlines the policies for state employees using personal vehicles, while 65-05-28 and 34-06-22 expand on compensation specifics and minimum wage standards, respectively. 

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Understanding the details of these laws, described below, will ensure your employees traveling for work are fairly compensated, and you avoid accidentally violating any state law under the Workers' Compensation Act in North Dakota.

Code 54-06-09 for state employees' mileage reimbursement

If you're handling state employees, it's important to know about code 54-06-09^[1]. When state employees use personal vehicles for official duties, they're reimbursed at the state-set rate for every mile they cover, which, in 2024, is $0.67 per mile. 

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Here's some important scoop for you.

• Reimburse at the standard state rate for every mile traveled within North Dakota and the immediate vicinity.
• Cover just the miles — you do not have to cover additional costs such as repairs, fuel, or traffic. 

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As an employer, also know that if your employees' journey takes them more than 300 miles out of state, the rate changes – a reduced rate of $0.18 per mile applies.  

Codes 92-01-02-12 and 65-05-28 of the workers' comp act for mileage reimbursement  

The Workers' Compensation Act, specifically through code 92-01-02-12^[2], stipulates that all North Dakota employees, not just state staff, are covered under this act when injured on the job. 

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Further, code 65-05-28^[3] of the Workers' Compensation Act states that if your employees need to travel for medical treatment, reimbursement kicks in with the following conditions. 

• Reimburse for the closest necessary care only. Choosing a distant hospital may require employees to pay for additional travel.
• Cover companion travel costs, like a partner, only if the employee cannot travel alone due to their injury.

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You may also request a doctor's note when an employee's condition necessitates companion travel.

Code 34-06-22 for minimum wage standards in North Dakota

Code 34-06-22^[4] sets the stage for Minimum Wage Law in North Dakota. As per the law, the state follows the federal minimum wage of $7.25 per hour. 

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Although distinct from mileage, this law is still indirectly related to mileage reimbursement. 

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As a North Dakota employer, it's your legal responsibility to ensure that nothing – not even mileage – can drop the minimum wages of your employees below the federal minimum. If it does, you need to step up and cover the difference.

Make mileage tracking error-free with Ramp's automation

As an employer in North Dakota, you need to stay on top of the state's mileage reimbursement laws to ensure you're both compliant and supportive of your employees. The rules, spread across codes 54-06-09, 65-05-28, and 34-06-22, are pivotal in managing how your employees are compensated for travel. 

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Proper reimbursement practices also reap the following benefits for you.

• Ensure that your employees feel valued for their work-related travel.
• Enhance job satisfaction and productivity.

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Want to simplify the mileage tracking and reimbursement process for your business? Ramp can help you. Ramp's AI-powered expense management software automates the record-keeping and calculation tasks, ensuring accuracy and compliance with state-specific regulations. 

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By integrating Ramp, you reduce administrative burdens and eliminate manual errors in mileage logging, promoting transparency and fairness.