Mississippi Mileage Reimbursement Rates and Calculator

Some Important Mississippi Mileage Reimbursement Laws

In Mississippi, the approach to mileage reimbursement for private employers is primarily governed by federal law and specific state regulations for certain situations, rather than a broad state mandate for all business mileage.

1. No State-Specific General Mandate

Mississippi does not have a state law that requires private employers to reimburse employees for the use of their personal vehicles for general business purposes.

2. Federal Fair Labor Standards Act (FLSA)

This is a critical consideration. Mississippi adheres to the federal minimum wage of $7.25 per hour, as it does not have its own state minimum wage law.

Under the FLSA, employers must ensure that any unreimbursed business expenses incurred by an employee (such as mileage) do not cause their effective hourly wage to fall below this $7.25 federal minimum for any given workweek.

If such expenses do reduce pay below the minimum, the employer is obligated to reimburse at least enough to cover the shortfall.

3. Mississippi Workers' Compensation Act

This act mandates that employees who suffer work-related injuries are entitled to reimbursement for reasonable travel expenses incurred to obtain medical services. 

As mentioned, the Mississippi Workers' Compensation Commission (MWCC) sets this rate, which is 70 cents per mile as of January 1, 2025.

4. Employer Policy is Key

Given the absence of a general state mandate, the employer's own established policy on mileage reimbursement becomes very important. A clear, consistently applied policy benefits both the employer and employees.

Mississippi Mileage Reimbursement Law vs. Federal Law

When it comes to mileage reimbursement in Mississippi, here’s how state and federal considerations interact:

Federal Law (FLSA)

The Fair Labor Standards Act is the main federal law influencing this area in Mississippi. 

Its core impact is ensuring that unreimbursed business mileage (or any other work-related cost borne by the employee) doesn't cause an employee's pay to drop below the federal minimum wage of $7.25 per hour. Mississippi employers must adhere to this.

Mississippi Law

• Mississippi does not have its own minimum wage law, defaulting to the federal rate.
• It does have a specific requirement under its Workers' Compensation Act for employers to reimburse injured employees for travel to obtain medical treatment at a rate set by the MWCC.

IRS Regulations

The IRS provides the standard mileage rates (70 cents for business in 2025) used for federal tax purposes. While not laws that mandate reimbursement by employers, these rates are critical.

If an employer in Mississippi chooses to reimburse using these rates under an "accountable plan," the reimbursement is typically not counted as taxable income for the employee and is deductible for the employer. This makes using IRS rates a common and practical approach.

So, for Mississippi employers, the FLSA's minimum wage protection is a key federal constraint, state law specifically addresses workers' compensation medical travel, and IRS rules guide the common practice and tax implications of reimbursement.

How Fyle Can Automate Mileage Tracking in Mississippi

For businesses in Mississippi, relying on manual mileage logs, collecting paper receipts, and cross-referencing changing rates can be a time-consuming and error-prone ordeal.

Fyle offers an intelligent and automated approach to mileage tracking, ensuring compliance and efficiency.

• GPS-enabled distance capture: Fyle leverages Google Maps to provide precise calculation of miles driven. Employees simply enter their starting point, any interim stops, and their destination, and Fyle accurately computes the travel distance, eliminating manual calculations and odometer readings.
• Customizable rate management: Whether your company uses the current IRS standard rates, the Mississippi state employee rate for certain scenarios, or has unique internal rates, Fyle allows finance teams to easily configure and manage these rates within the system, applying them automatically to claims.
• Effortless commute mileage handling: Fyle helps in clearly distinguishing and managing non-reimbursable commute miles. By setting home and office locations, businesses can implement policies to deduct commute distances accurately, aiding in compliance, particularly with IRS rules.
• Automate repetitive journeys: Employees who frequently travel the same routes can set up recurring mileage claims in Fyle. This feature drastically cuts down on data entry time for regular trips, whether they occur daily, weekly, or monthly, enhancing employee productivity.
• Built-in policy checks: Define your organization's specific mileage reimbursement policies within Fyle. Set limits on distances, maximum claim amounts, or require specific documentation. Fyle will automatically check submissions against these rules, flagging violations and ensuring compliance before reports reach approvers.
• Direct accounting sync: Say goodbye to manual data entry into your accounting software. Fyle offers seamless integrations with popular platforms like QuickBooks, Xero, NetSuite, and Sage Intacct. Approved mileage expenses flow directly, reducing errors and saving valuable finance team hours.
• Swift ACH reimbursements: For U.S.-based companies, Fyle enables the direct reimbursement of mileage claims to employees via ACH. This completes the expense cycle quickly, ensuring employees receive their payments promptly and conveniently.

By adopting Fyle, Mississippi companies can modernize their mileage tracking, reduce administrative burdens, maintain accurate records, and ensure their reimbursement process is both compliant and efficient.