Mileage Reimbursement in the State of Kentucky (KY)

The state of Kentucky does not have any laws governing mileage reimbursement except with respect to Workers Compensation. There is no minimum amount set forth or enforced by the state. Most employers, public and private do pay for travel expenses including mileage reimbursement as an act of good faith.

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.

Employers are required to reimburse injured employees for travel to and from medical and rehabilitation facilities at a rate approved by the office of the controller. The insurance company handling the claim must designate the provider.

The commonwealth of Kentucky calculates its compensation rates quite differently than most. The formula that they use to calculate this rate applies to employees in the executive branch of government and certain pre approved persons traveling on official state business. It does not apply to the legislative or judicial branch, nor State college staff.

The reimbursement rate is determined using the AAA daily fuel gauge report for Kentucky for regular unleaded gasoline. The rate will be adjusted January 1, April 1, July 1, and October 1 of each calendar year. The adjustment will be based on the average retail price of regular grade fuel the week beginning on the second Sunday of the prior month. The current rate, effective July 1, 2006 is $.43

When traveling for the state you are expected to use the most economical transportation available and follow the most direct and usual traveled routes. Any deviation will be at your personal expense. In state mileage is to be determined using Kentucky official highway map mileage software, or the website mapquest. Out of state mileage will be based on mapquest or the most current edition of The Rand McNally road atlas mileage software.