Mileage Reimbursement Laws Governing North Dakota

So you work in North Dakota and have to travel and you are wondering if your employer is paying you enough? I did some research and found out that employers are not required by law to pay mileage expenses. Most do however pay some form of reimbursement for travel expenses, and they are required to pay you for your travel time. There is just no state law governing how much or whether they need to reimburse you for using your personal vehicle. The rates and regulations that they use usually reflect that of the State.

Interestingly enough, the state actually discourages its own employees from using their own vehicles for official business. The state requires that employees choose the most economical means of travel, considering factors such as travel expense, time away from the office, and the needs of the department. To encourage the use of state vehicles and to be more cost effective, a state vehicle should be used for official business whenever available. The mileage rate for personal vehicles is $.375 per mile, only if pre-approved and no other transportation was available. If an employee has the option to use a state vehicle and they use theirs anyway they will only be paid $.31 in state and $.18 out of state. Your employer will have his own idea of what constitutes necessary business travel and will probably have his own set of regulations to be followed.

Travel expenses are not usually considered taxable income, unless you are compensated at a higher rate than the federal standard. If your employer doesn’t reimburse you for the miles that you drive than you may be able to claim the expenses 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

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