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Mileage reimbursement might sound like just another line item on your business expenses, but it's much more than that. It basically means fairly compensating your team for the miles they log on their own vehicles for work-related duties.
In Oregon, the Statewide Fleet Management Policy 107-011-040 for state employees guide these rates and are deeply influenced by IRS guidelines. It's not a must-do for you as a private employer, but offering mileage reimbursement does help in the following ways.
- Ensure your business meets the mandatory Workers' Compensation Law guidelines.
- Align and keep up with the Oregon Minimum Wage Law.
Oregon business mileage reimbursement rates
In 2024, the mileage reimbursement rate for state employees in Oregon is 67 cents per mile, set by both the Internal Revenue Service (IRS) and the US General Services Administration (GSA). As a private employer, you have the freedom to choose to align with the IRS standard to reimburse employees for work-related travel expenses fairly.
Here's a closer look at the IRS standard mileage reimbursement rates that Oregon has followed 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.
Oregon mileage reimbursement calculator
Using the Oregon 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.
Oregon mileage reimbursement laws
Understanding Oregon's mileage reimbursement laws is essential for you as an employer. The state has specific policies that apply to state employees, and there are also important considerations for private employers.
These laws include various codes and policies, such as the Statewide Fleet Management Policy 107-011-040 and Workers' Compensation Act. Explore all such critical policies and laws in detail.
State employees’ mileage reimbursement policies
State agencies must understand that state employees are required to receive mileage reimbursement under certain conditions, guided by the Statewide Fleet Management Policy 107-011-040[1].
One key aspect of this policy is the requirement for prior authorization. Before state employees use a private vehicle for state business, the agency should authorize the method of transportation[2].
Remember, a state agency can:
- Authorize the use of private vehicles for state business only if no state-owned vehicle is available.
- Allow using a private vehicle only if it is more cost-effective based on factors like distance, duration, or route.
The mileage reimbursement rate for state employees is $0.67 per mile. However, it is reduced to $0.21 per mile if a state-owned vehicle is available, but a private vehicle is still used with managerial approval.
Oregon’s workers' compensation act for mileage reimbursement for injured employees
As a business owner – even a private employer – it's essential to know that Oregon's Workers' Compensation Act requires you to reimburse injured employees for certain expenses. This isn't optional—it's a legal requirement.
If your employees suffer a work-related injury, you're required to do the following things.
- Reimburse them for travel expenses related to their medical treatment, including mileage to and from healthcare providers and pharmacies[3].
- Compensate for parking fees and tolls incurred during medical visits.
Please note: Oregon's Workers' Compensation Division sets the mileage reimbursement rate for injured workers at $0.67 per mile.
Oregon minimum wage act and its implications for mileage reimbursement
The Oregon Wage Act sets the minimum wages and ensures all employees in Oregon receive fair pay for their work. While the Act doesn't specifically require you to reimburse for mileage, it dictates that any employee's earnings should not drop below the state minimum of $14.70 per hour.
Naturally, if not reimbursing for mileage is dropping your employee's earnings below the state minimum wage, you need to offer reimbursement. Failure to do so will lead to hefty fines. It's also worth noting that the minimum wage in Oregon can vary by region, as tabulated below.
Upgrade to automated mileage tracking with Ramp
Adopting a fair mileage reimbursement policy in Oregon is a win-win situation – it keeps your team happy and your business on track!
Remember, fair mileage reimbursement can:
- Guarantee better employee performance
- Secure higher profits for your business
- Lead to talent retention
- Keep your business aligned with the Minimum Wage Law
However, managing mileage reimbursement can be a headache. That's where Ramp comes in. Ramp's AI-powered expense management system streamlines the entire mileage tracking process, making it simple for you to record, approve, and reimburse travel expenses accurately.
By automating this task with Ramp, you save time, reduce errors, and keep everyone happy. It's an easy way to take one more thing off your plate while supporting your team.
Related posts
[1] Under the header, ‘Private vehicle reimbursement rates’: https://www.oregon.gov/das/Financial/Acctng/Documents/40.10.00.pdf
[2] Under the header, ‘Authorization of transportation method required’: https://www.oregon.gov/das/Financial/Acctng/Documents/40.10.00.pdf
[3] Under the header, ‘Prescription and mileage reimbursement’: https://www.eugene-or.gov/DocumentCenter/View/47059/Workers-Comp-Guide?bidId=#:~:text=Prescription%20and%20Mileage%20Reimbursement,is%20provided%20with%20this%20guide.
