Rhode Island Mileage Reimbursement Law

How much does an employer have to pay its regular employees for business travel? Actually, if you live in Rhode Island, there is no minimum. In fact, there is no law that even requires them to pay any set rate for mileage. Most employers do, however reimburse their employees for travel expenses, including mileage. By law, your employer must pay you for travel time, but there is nothing that says they have to pay you for mileage. Most employers do give a mileage allowance to their employees for their travels and will usually reflect the rates and polices set forth by the state.

The state of Rhode Island uses the federal standard rate. The rate is set every year by the IRS and is currently 44.5 cents per mile. If you use your personal vehicle for business related travel, the mileage allowance is expected to cover all costs associated with operating including gas, oil, towing charges, repairs, auto insurance and damages. Usually toll charges and parking fees will be reimbursed separately. Miscellaneous costs that may be incurred while traveling are usually not compensated. These include parking tickets or moving violations, vehicle damage or repairs, or vehicle theft. Your employer will probably want to make sure that you are adequately insured before using your own vehicle to conduct official business. If you travel regularly for work you are probably already aware of your travel policies, it is always a good idea to discuss ahead of time what you will be reimbursed for and how to get reimbursed.

If your employer does not compensate you for travel expenses or pay you a mileage allowance than you may be able to claim these expenses as a deduction. If you are paid at the current federal rate then it is not considered taxable wages, however if you are paid less you may be able to deduct the difference and if you are paid more than the excess may be subject to taxable income.