Arkansas State Mileage Reimbursement Laws

How much does your employer have to pay you for mileage? There is no state law governing the amount. In fact, by law your employer is not even required to reimburse you for mileage. If your employer has a business travel policy, it is by choice. I was surprised to learn that it wasn’t a law, given that so many employers pay for travel related expenses, sometimes giving a travel allowance and others in the form of reimbursement for expenses paid or a set rate for miles traveled.

In my research I have found that while there are no hard and fast rules, most employers will follow the same procedures for business travel as that of the state. There will usually be some provisions as to what qualifies as reimbursable. There is usually a set rate per mile for the use of a personal vehicle while traveling.

Some employers pay their employees at a rate lower than that set forth by the IRS and in that case the difference may be deducted for tax purposes, however if paid at a higher rate than the excess will be counted as taxable income. They may use any rate they see fit.

The Arkansas Workers Compensation Commission approves mileage reimbursement rates as medical expenses relating to an injury or illness arising out of and in the course of employment. The rate is for actual miles driven. The chief fiscal officer of the state establishes the rates. The current rate is $.39 per mile.

Injured employees are expected to use the most economical means of transportation when seeking medical treatment. Personal vehicle mileage shall be reimbursed using map mileage between the travel site destination and the employee’s official station or residence whichever is less. The shortest major highway route will determine the maximum mileage allowed.