Mileage Reimbursement Requirements for Businesses in the State of Illinois (IL)
Posted on May 16, 2016 byRachel
There are no Illinois laws governing how much or even whether an employer must pay any mileage rate for business travel. Most employers do pay travel expenses, including reimbursement for miles driven. The rate may be higher or lower than that of which the Federal government sets forth or which the state grants its employees and persons traveling on official state business.
The mileage reimbursement rate for the use of a personal vehicle while traveling on State of Illinois business is in accordance with the federal government rate. The federal government rate is the rate used by the IRS.
The mileage reimbursement rate is established each year on July 1. The new rate is set to match that of the federal government. As of July 1, 2006 the rate was increased to $.445 per mile from $.405. Interestingly, if the rate increases during the fiscal year the rate will not be changed until the following July, however if the rate should decrease it will be changed immediately.
The guidelines apply to state employees, including public institutions of higher learning, except community colleges. The Illinois Board of Education was included in February 2004. They will be reimbursed per mile for the use of personal vehicles while on state business.
When traveling on official state business, the guidelines set forth in the Governors Travel Control Board travel guide for State Employees. I have included here a summary of the basic council rules for business related travel.
All travel shall be by the most economical mode of transportation available considering travel time, costs, and work requirements. Modes of transportation include the usual means, such as trains, buses, taxicabs, airplanes, automobiles. Travel arrangements made by plane, boat or train must be the least costly reasonable alternative. All travel must be by the most direct route. When calculating mileage, distances between destinations are as shown on the Illinois Highway Map published by the Secretary of State.
Employers are required to reimburse injured employees for medical related travel expenses according to the Workers Compensation Commission. The commission does not follow the current IRS guidelines; instead the Governors Travel Control Board sets the mileage rates for state offices.
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