In Louisiana, understanding mileage reimbursement involves looking at federal guidelines, specific state rules for workers' compensation, and the general practices adopted by employers.
For businesses and employees in Louisiana, knowing these rates and rules is key to fair compensation and compliance.
The most frequently referenced standard for business mileage reimbursement is the rate set by the Internal Revenue Service (IRS). For the year 2025, the IRS has announced the standard mileage rate for business use at 70 cents per mile. This rate was 67 cents per mile for 2024.
While Louisiana private employers are not generally mandated by a specific state law to use the IRS rate for all business mileage, many choose to do so because:
- It offers a clear, widely accepted benchmark.
- Reimbursements under an accountable plan at or below this rate are typically non-taxable for employees and deductible for employers.
As of January 1, 2025, the key IRS standard mileage rates are:
- 70 cents per mile for business use of a vehicle.
- 21 cents per mile for medical or moving purposes (note: the deduction for moving expenses is currently limited to active-duty members of the U.S. Armed Forces).
- 14 cents per mile driven in service of charitable organizations.
Other relevant rates in Louisiana include:
- Louisiana State Employee Rate: The State of Louisiana, through its comprehensive travel regulations (Policy and Procedure Memorandum 49 - PPM49), sets the reimbursement rate for state employees using personal vehicles for official business. This rate is typically aligned with the current IRS standard business rate. For 2025, this is 70 cents per mile.
- Workers' Compensation Medical Travel: Louisiana law requires employers to cover reasonable travel expenses for injured employees to obtain necessary medical treatment. The Louisiana Office of Workers' Compensation (OWC) has set the mileage reimbursement rate for this purpose at 70 cents per mile, effective January 1, 2025 (it was 67 cents per mile in 2024).
For historical context, here are the IRS standard business mileage rates from recent years:
Louisiana Mileage Reimbursement Calculator
Simplify your mileage reimbursement calculations with our user-friendly Louisiana Mileage Reimbursement Calculator.
How to Use the Calculator:
- Select the correct tax year: Choose the year for which you're calculating reimbursement (e.g., 2025, 2024), as the applicable IRS rates can change.
- Input your business miles: Enter the total number of miles driven for business purposes using your personal vehicle.
- Calculate your reimbursement: The calculator will automatically apply the official IRS standard mileage rate for the selected year and display your estimated reimbursement amount.
This tool provides a quick and accurate estimate, beneficial for both employees needing to claim expenses and employers processing those claims.
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Some Important Louisiana Mileage Reimbursement Laws
While Louisiana doesn't have a single law mandating mileage reimbursement for all private-sector employees in every instance, several state laws and federal regulations influence how employers should handle these expenses:
1. Louisiana Minimum Wage & Federal FLSA
Louisiana does not have its own state minimum wage. Therefore, employers must adhere to the federal Fair Labor Standards Act (FLSA), which mandates a minimum wage of $7.25 per hour.
Crucially, any unreimbursed business expenses required of an employee, such as mileage for using a personal vehicle for work, should not cause their effective hourly earnings to fall below this federal minimum wage for the hours worked in a pay period.
If it does, the employer could be in violation of the FLSA.
2. Workers' Compensation (Louisiana Revised Statute 23:1203)
Louisiana law (RS 23:1203) requires employers to furnish all necessary medical care for employees who suffer work-related injuries.
This includes the reimbursement of reasonable travel expenses to obtain such medical treatment. As noted, the Office of Workers' Compensation (OWC) sets this mileage rate, which is 70 cents per mile for 2025.
3. No General Mandate for Private Employers
Outside the context of ensuring minimum wage compliance under the FLSA and the specific requirements for workers' compensation, there isn't a broad Louisiana statute compelling private employers to reimburse for general business mileage at a specific rate or in all situations where a personal vehicle is used for work.
Company policy, therefore, plays a significant role in determining reimbursement practices.
Louisiana Mileage Reimbursement Law vs. Federal Law
Understanding the interplay between Louisiana's state context and federal laws is essential for proper mileage reimbursement:
Federal Law (FLSA)
The Fair Labor Standards Act (FLSA) is the primary federal law affecting this area in Louisiana. It mandates that employees receive at least the federal minimum wage ($7.25 per hour) "free and clear" of any business expenses incurred primarily for the employer's benefit.
If a Louisiana employee's unreimbursed mileage costs effectively reduce their pay below this federal threshold, the employer must provide sufficient reimbursement to meet the minimum wage.
Louisiana State Law
- Louisiana relies on the federal minimum wage.
- Specific provisions under Louisiana Revised Statute 23:1203 mandate mileage reimbursement for travel related to workers' compensation medical treatment at a rate determined by the OWC.
IRS Regulations
The IRS sets the standard mileage rates (e.g., 70 cents/mile for business in 2025) for tax purposes. These rates are not legal mandates for employers to reimburse but are crucial for determining the non-taxable amount of reimbursement under an accountable plan.
Using these rates helps ensure that reimbursements aren't considered taxable income for employees and are deductible for employers.
In Louisiana, federal minimum wage law provides a crucial wage floor. State law specifically addresses workers' compensation travel. IRS guidelines then offer a practical framework for the amount and tax treatment of reimbursements, widely adopted by Louisiana employers.
How Fyle Can Automate Mileage Tracking in Louisiana
For Louisiana businesses, managing mileage logs manually, deciphering handwritten notes, and keeping up with applicable rates can be a significant administrative burden.
Fyle offers a modern, automated solution to simplify and streamline your mileage tracking and reimbursement process.
Here’s how Fyle helps Louisiana businesses stay on top of mileage expenses:
- Accurate GPS tracking: Fyle uses Google Maps for precise distance calculation. Simply enter your start, stop, and end points, and Fyle automatically calculates the travel distance, eliminating manual errors.
- Flexible rate configuration: Set up custom mileage rates for various vehicle types or align with IRS standard rates. Fyle applies these automatically to claims.
- Simplified commute deductions: Easily define home and work locations to manage non-reimbursable commute mileage accurately and ensure IRS compliance.
- Automated recurring trips: For regular routes, set up recurring mileage claims daily, weekly, or monthly, saving significant time on manual entries.
- Built-in policy enforcement: Embed your company's mileage policies directly into Fyle. Set rules for distance or amount limits, ensuring compliance before submission.
- Seamless accounting integration: Fyle integrates with leading accounting software like NetSuite, QuickBooks, Xero, and Sage Intacct, syncing approved mileage reports automatically.
- Direct ACH reimbursements (US only): Reimburse employee mileage claims directly from Fyle via ACH for timely payments.
By leveraging Fyle, businesses across Louisiana can transform their mileage tracking from a time-consuming manual task into an efficient, automated, and compliant operation.
