Mileage Reimbursement in Indiana (IN)

With the high cost of gas and insurance today, and many of us having to travel for work I was curious to see how employers were compensating for the increased travel expenses. I was surprised to learn that there is no law in Indiana that requires employers to pay a certain mileage rate. In my research I found that the only laws governing reimbursement for mileage are with regard to employees of the state, and claimants of Workers Compensation benefits.

Mileage shall be reimbursed at the IRS rate that is in effect at the beginning of each budget year. There shall be no retroactive “make-up” of mileage reimbursement in the event the IRS-approved rate changes during the budget year. The current mileage rate is 44.5 cents per mile. Mileage for personal car transportation is paid from the employee’s work location or from the employee’s home whichever is closer. The reimbursement for mileage or train passage may not exceed the cost of comparable 30-days advance purchase airfare rates. Mileage is determined by using official state highway maps.

If you are injured on the job, the employer provides medical care reasonably suited to treat the employee’s injury, and has the right to choose the medical care. The law provides for the payment of all reasonable and necessary medical care incurred to treat the injury. This includes reasonably necessary transportation expenses. Mileage for use of a private auto is reimbursed at a rate set by the state of Iowa.

In the unlikely event that your employer does not reimburse you for expenses, keep in mind that most travel expenses are tax deductible. As long as they do not exceed the federal maximum, the compensation and reimbursement amounts you do receive for business travel are not considered taxable income. You should discuss expense reimbursement with your employer prior to travel. If you plan on deducting expenses I would recommend getting advice from a professional.

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