State Mileage Reimbursement Law Requirements in Iowa (IA)

If you travel a lot for work you probably receive some kind of compensation. Most employers will pay travel expenses, including a mileage rate. Some employers use a fixed daily rate for travel. You may find it interesting to know that unless you are a Workers Compensation claimant, they are not required to do so. There are no state laws governing how much an employer must pay for mileage. Most employers will pay at a rate at or near the federal standard. In order to be reimbursed there are usually set guidelines which need to be followed. These guidelines are also up to the individual employer and are not governed by the state.

The only exception is for claimants of Workers Compensation benefits. The Iowa code refers to this as transportation expenses. Transportation expense in the form of reimbursement for mileage which is incurred in the course of treatment or an examination, shall be payable at such time as 50 miles or more have accumulated or upon completion of medical care, whichever occurs first. Reimbursement for mileage incurred shall be paid within a reasonable time after the examination. The workers’ compensation commissioner or a deputy commissioner may order transportation expense to be paid in advance of an examination or treatment. The parties may agree to the advance payment of transportation expense.

If your employer chooses not to reimburse you for the miles that you drive than you may claim it as a deduction. The current federal standard rate is $.445 per mile. If you are given a mileage rate and it is below this amount than you may be able to claim the difference, however if you are paid at a higher rate, the excess may be considered taxable wages. If you travel regularly for business than you are probably aware of what your company policy is for travel expenses. You may want to discuss with your employer what they consider to be reimbursable.