State Mileage Reimbursement Laws in Arizona (AZ)

I was interested to discover that Arizona, like so many other states does not require employers to pay for mileage. There are no laws or statutes governing how much an employee is to be compensated for business travel. In fact, there is nothing stating that your employer has to reimburse you at all.

Most employers will pay for business related travel expenses. They usually pay their employees at a rate close to that set by the IRS. The IRS sets an optional standard mileage rate based on a number of factors. This is the maximum amount allowed as a deductible expense. If you are paid at a rate lower than the amount, which is currently set at $.445 than you may claim the difference, but if you are paid at a higher amount, then you may be subject to report the excess as wages earned.

Arizona does require that injured employees be reimbursed for costs incurred while seeking medical treatment. Travel expenses for Workers Compensation claims fall under medical expenses. The only requirement is that it be considered reasonable travel and the route traveled must be the most direct. You may want to check what expenses will be covered in the event that you choose your own provider or have to travel out of town to receive medical care or treatment.

The law states that employers must pay mileage costs to injured employees for miles traveled to and from medical and rehabilitation providers. The rate at which they are paid reflects that of state employees. The Arizona department of Administration defines a state employee as any full or part time individual being paid under the authority of the payroll system of the government.

The current rate as set by The General Accounting Office is $.405. This rate has been in effect since September 28, 2005.