State of Minnesota Mileage Reimbursement Regulations

Minnesota Statutes authorizes public entities to compensate or reimburse their employees for the use of their own personal vehicles on official business. It allows governing bodies to set a mileage allowance or to pay a “monthly or periodic allowance.”The current mileage reimbursement rate for 2006 is $.445 per mile, which is consistent with the IRS. Your employer may have their own policies regarding business related travel expenses, however they must fall within the state guidelines. If you are given a mileage rate and it is below the federal standard 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.

Mileage shall be paid for the shortest direct route according to official highway department records. Odometer readings are not required, but may be used if mileage cannot be determined from state maps or mileage book. The department head shall require proof of automobile insurance before approving private car mileage. When mileage is claimed in lieu of commercial transportation, the total cost of mileage claimed cannot exceed the lowest cost obtainable from a commercial carrier. Lodging and meals reimbursements are limited to those that would have been incurred using commercial transportation. An employee may be reimbursed for car rental if a state car is unavailable for use and a rental car is the only or least expensive method of transportation. Employees using state owned or private cars shall be reimbursed for the actual parking fee.

If you travel frequently for work than you are probably aware of your companies travel regulations. If you do not travel regularly than you may want to discuss these policies beforehand so that you are aware of what is reimbursable. Most employers require prior authorization to use your own vehicle for business anyhow. Also if you are injured on the job, Minnesota law provides for reimbursement of mileage expense to and from your chiropractor and/or physician.

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