South Dakota mileage reimbursement rates & calculator

Mileage reimbursement is a valuable practice for you as a South Dakota (SD) employer. As per South Dakota Statute § 3-9-1, state employees are reimbursed at 67 cents per mile, aligned with the IRS's 2024 rate for using personal vehicles for state business. 

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While mileage reimbursement isn't mandatory for you as a private employer, implementing a clear policy can offer significant benefits, as listed below. 

• Enhance employee satisfaction and retention
• Ensure compliance with SD's Minimum Wage Law 

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It's also worth noting that while South Dakota's Workers' Compensation Program does not directly mandate mileage reimbursement, it reflects the broader commitment to fair labor practices. 

South Dakota business mileage reimbursement rates 

In South Dakota, the Bureau of Finance and Management has determined that state employees' current mileage reimbursement rate is 67 cents per mile for 2024, in sync with the IRA rates. 

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However, when state vehicles are available and the employee still chooses to travel in a personal vehicle, the reimbursement rate drops to 45% of the IRS rate i.e. 30.15 cents per mile. 

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As a private employer, it's important to note that while you are not legally required to follow these specific rates, establishing a clear mileage reimbursement policy can greatly benefit your business and employee relations.

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Here's an overview of mileage reimbursement rates in South Dakota as per IRS standards in 2024 and their year-by-year 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.

South Dakota mileage reimbursement calculator

Using the South 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.

South Dakota mileage reimbursement laws

Following South Dakota mileage reimbursement laws—even though some of them, such as Statute §3-9-1, do not mandate you, a private employer, to offer mileage reimbursement—can keep your business out of legal troubles and civil lawsuits. 

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The most crucial policies span from precise stipulations for state employees under §3-9-1 to broader advisories for private employers. Here's a breakdown of critical policies that could significantly influence your business.

Statute §3-9-1 for state employees' mileage reimbursement

For state employees in South Dakota, the mileage reimbursement rate is set at 67 cents per mile for 2024, aligned with the IRS rate, as authorized by the Bureau of Finance and Management. 

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Additionally, under Statute §3-9-1, those with special needs using modified vehicles are reimbursed at 87.1 cents per mile — 130 % of the IRS standard. This increase from the expected 68 cents addresses rising inflation levels. 

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Please note: Only privately owned passenger or cargo vans, pickup trucks, and sport utility vehicles qualify for the 130% IRS rate reimbursement.

Workers compensation law and its impact on mileage reimbursement

Unlike most states, South Dakota doesn't require you to carry Workers' Compensation Insurance. However, offering this along with mileage reimbursement for injured employees is advisable. Injured employees might sue your business in civil court if you don't. 

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Moreover, if any injured employees suffer from occupational diseases like silicosis, as specified in Statute 68-8-1, compensating them becomes mandatory. Under Code 62-8-4 of the Workers' Compensation Law, such diseases are treated as accidental injuries. 

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Below is a snapshot of mileage reimbursement rates for injured employees, including the rates for 2024.

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South Dakota minimum wage law and its impact on mileage reimbursement

As per South Dakota's Minimum Wage Law, in 2024, you must offer your employees the minimum wages listed below. 

• Pay $11.20 per hour to non-tipped employees.
• Pay $5.60 per hour to tipped employees who regularly earn more than $35 monthly in tips^[1].

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Though mileage reimbursement isn't mandated by the Minimum Wage Law, if using personal vehicles for business brings your employees' wages below the minimum, you must cover the shortfall to meet state minimums. 

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Exemptions from the Minimum Wage Law apply if you employ any of the following^[2]:

• Babysitters
• Outside salespersons
• Apprentices and learners
• Individuals with developmental disabilities under special permits from the Department of Labor and Regulation.

Enjoy simplified mileage tracking with Ramp

Following South Dakota's mileage reimbursement laws extend beyond meeting compliance. It's a strategic advantage for your business. When fairly implemented, mileage reimbursement can offer the following benefits. 

• Ensure your employees are compensated fairly for their travel.
• Boost your team's morale by committing to their financial welfare. 
• Build your team's trust in you, motivating them to be more productive 
• Make your business more profitable

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Integrating Ramp into your operations can transform how you handle these reimbursements. Ramp's AI-driven expense management system automates mileage tracking, reducing administrative burdens and minimizing errors in logging travel expenses. 

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By using this tool, you can ensure accuracy in reimbursements, comply effortlessly with state guidelines, and free up time to focus on core business activities. Embrace Ramp to simplify mileage reimbursement, reinforcing your role as a responsible employer in South Dakota.