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Mileage reimbursement is a vital part of employment that supports your team financially when they use personal vehicles to travel for work. For state employees, the mileage rate is guided by the IRS at 67 cents per mile.
If you run a private business, adopting IRS rates isn't mandatory unless it concerns injured workers under South Carolina's Workers' Compensation Act, which requires reimbursement for travel beyond 5 miles for medical treatment.
Here are the many benefits of offering fair mileage reimbursement to all your employees - injured or otherwise.
- Meet your obligations without overstepping or underdelivering on employee wages, aligning with the minimum wage criteria in South Carolina.
- Keep your team stress-free, motivated, and happy.
South Carolina business mileage reimbursement rates
For 2024, South Carolina (SC) has set the standard business mileage reimbursement rate at 67 cents ($0.67) per mile. This rate applies to state employees and is aligned with the IRS guidelines. While it serves as a benchmark, remember that as a private employer, you have the flexibility to set your own rates.
Here's a tabulated snapshot of the year-on-year IRS mileage reimbursement rate analysis to set the context.
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.
South Carolina mileage reimbursement calculator
Using the South Carolina 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.
South Carolina mileage reimbursement laws
Understanding mileage reimbursement in South Carolina is key to managing your responsibilities effectively as an employer. While state employees have a set rate according to the IRS, as a private employer, you're not bound to these rates unless it's for workers' compensation claims.
Let's walk you through the specifics of all such critical mileage reimbursement regulations in South Carolina.
General appropriations act for mileage reimbursement for state employees
Under the General Appropriations Act, South Carolina state employees are reimbursed for mileage at the standard IRS rate of 67 cents per mile, effective January 1, 2024.
It's important to note that if employees have the option to use a motor pool vehicle and choose to use their personal vehicle instead, the reimbursement rate drops by 4 cents, bringing it to 63 cents per mile. This measure encourages the use of state-provided vehicles.
SC's workers' compensation law for mileage reimbursement for injured employees
South Carolina's Workers' Compensation Law is not optional – even as a private employer, you are mandated by this law to offer reimbursement to employees who sustain injuries at work.
As per this law, you must offer mileage reimbursement to injured employees traveling to and from medical treatments and pharmacies. This is only applicable if the travel distance is more than:
- Five miles for medical appointments
- Ten miles for pharmacy visits
Below is a breakdown of the mileage reimbursement rates under SC's Workers Compensation Act over recent years.
South Carolina reimbursement laws vs federal rules
Since South Carolina follows the Federal Minimum Wage of $7.25 per hour without setting its own rate, it's easy to mistakenly assume the same applies to mileage reimbursement laws.
In reality, while federal IRS rates apply uniformly to federal and state employees in South Carolina, you're free to establish your own mileage reimbursement policies as a private employer.
This gives you the flexibility to set rates that align with your business needs and budget and is starkly different from federal guidelines for mileage reimbursement.
Experience hassle-free and automated mileage tracking with Ramp
Keeping up with South Carolina's mileage reimbursement laws ensures that both you and your employees are clear on what to expect when it comes to travel expenses. Proper adherence helps in the following ways.
- Ensure compliance with mandatory laws such as the Workers' Compensation Law.
- Boost your team's morale by compensating them for mileage when they use their personal vehicle for work-related travel.
And guess what? Introducing Ramp into your operations can transform how you manage these reimbursements.
Ramp's AI-powered expense software automates mileage tracking and reporting, reducing potential errors and disputes over travel claims. It simplifies the entire process, from logging miles to processing reimbursements, ensuring your employees are paid accurately and promptly.
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