For those using their personal vehicles for business travel in South Carolina, understanding mileage reimbursement is important for both employers establishing fair compensation practices and employees seeking clarity on their entitlements.
While South Carolina has its own set of labor laws, it aligns closely with federal guidelines in many areas, including minimum wage. This guide will cover common mileage rates used in South Carolina, relevant legal considerations for private employers, and how Fyle can simplify your mileage tracking and reimbursement.
South Carolina Mileage Reimbursement Rate
When it comes to private employers, South Carolina law does not mandate a specific mileage reimbursement rate. There isn't a state-legislated per-mile amount that companies are legally obligated to pay employees for using their personal vehicles for work-related travel.
However, it's a common practice for many businesses in South Carolina to use the standard mileage rates published annually by the Internal Revenue Service (IRS) as a reliable benchmark. Adopting the IRS rate is widespread because:
- It provides a nationally recognized standard calculated to reflect average vehicle operating costs, including fuel, maintenance, insurance, and depreciation.
- Reimbursements made at or below the current IRS standard business rate are generally non-taxable income for the employee, provided accurate records are kept.
- It offers a consistent and transparent method for fairly compensating employees for business use of their personal vehicles.
As of January 1, 2025, the key IRS standard mileage rates are:
- 70 cents per mile for business miles driven.
- 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.
For historical context, here are the IRS standard business mileage rates from recent years:
It is also worth noting that the South Carolina Workers' Compensation Commission sets a specific mileage reimbursement rate for injured workers traveling more than 10 miles round trip to obtain necessary medical care for a work-related injury.
Effective January 1, 2025, this rate is $0.70 per mile. However, this rate is strictly for workers' compensation medical travel and does not apply to general business mileage reimbursement by private employers.
South Carolina Mileage Reimbursement Calculator
Need a quick estimate for your mileage reimbursement? Our Mileage Reimbursement Calculator can help.
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Using the South Carolina Mileage Reimbursement Calculator is easy:
- Choose the tax year for which you want to calculate your reimbursement. Our calculator utilizes the IRS standard mileage rates applicable for that year, as these are a common benchmark in South Carolina.
- Input the total business miles driven. The calculator will then provide an estimated reimbursement amount, offering a useful figure for both employees and employers in South Carolina.
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Some Important South Carolina Mileage Reimbursement Laws
While South Carolina doesn't set a specific mileage reimbursement rate for private companies, certain labor laws are key:
1. No State-Mandated Rate
South Carolina law does not require private employers to reimburse their employees for mileage at a specific rate.
2. Federal Minimum Wage (FLSA) Applies
South Carolina does not have its own state minimum wage law, so the federal minimum wage of $7.25 per hour applies to most employees under the Fair Labor Standards Act (FLSA).
- The most critical legal consideration is that unreimbursed business expenses, such as mileage for work-related travel in an employee's personal vehicle, must not cause an employee's effective hourly wage to fall below this $7.25 per hour federal minimum.
- If an employee's actual take-home pay, after factoring in unreimbursed driving costs for the employer's benefit, dips below this threshold for their workweek, it could be an FLSA violation.
3. Adherence to Company Policy/Agreements
If an employer establishes a policy or enters into an agreement to reimburse employees for mileage, they are generally expected to honor that commitment.
The South Carolina Payment of Wages Act requires employers to pay all wages due according to the agreed terms of employment.
4. Record-Keeping
Maintaining accurate and detailed records of business mileage (including dates, purpose of travel, and miles driven) is a best practice for:
- Employers: To accurately calculate any reimbursements they choose to provide and to have documentation in case of an FLSA wage and hour inquiry.
- Employees: To support reimbursement requests under company policy and for personal tax records if necessary.
(Note: As of May 2025, a proposed bill, H. 3226, aims to establish a state minimum wage in South Carolina, but it is not currently enacted law. Employers should stay informed about any changes to state law.)
South Carolina Mileage Reimbursement Law vs Federal Law
Understanding how South Carolina's approach compares with federal laws is important:
Federal Law (FLSA)
- The FLSA does not explicitly mandate mileage reimbursement by private employers.
- Its primary role here is ensuring that unreimbursed work-related expenses do not illegally reduce an employee's wages below the federal minimum wage ($7.25 per hour).
South Carolina State Law
- No State Minimum Wage: South Carolina currently relies on the federal minimum wage.
- No Specific Reimbursement Statute: Like federal law, South Carolina does not have its own law compelling private employers to reimburse mileage at a specific rate. The FLSA's minimum wage protection is the guiding principle.
- Enforcement of Promised Benefits: The SC Payment of Wages Act ensures employers fulfill their agreements regarding compensation, which would include any promised mileage reimbursement.
IRS Guidelines
- These are federal tax guidelines, not laws that force private employers to reimburse.
- They define the rate at which mileage reimbursements are generally non-taxable to employees. This is why many South Carolina employers, like those nationally, use the IRS rates (e.g., 70 cents per mile for business in 2025) as a standard for their reimbursement policies.
In South Carolina, the legal landscape for private employers regarding mileage reimbursement is primarily shaped by federal FLSA minimum wage requirements, rather than specific state mandates on reimbursement rates.
How Fyle Can Automate Mileage Tracking for Your Business
Fyle offers an intelligent, automated solution to simplify mileage tracking and reimbursement for businesses across the state.
- Accurate tracking: Fyle integrates with Google Maps, providing reliable distance calculations for all work-related travel, giving you confidence in your reimbursement data.
- Uphold compliance with wage laws: By facilitating accurate mileage logs, Fyle helps businesses maintain the necessary records to demonstrate that employee earnings comfortably meet or exceed the federal minimum wage requirements, even after accounting for vehicle use for company purposes.
- Save time for your team: Free up your employees from the burden of manual logs and complex spreadsheets. Fyle’s user-friendly mobile app allows for effortless mileage tracking on the go. Employees can even submit expenses through familiar tools like Slack or Gmail.
- Flexible for your business needs: If your company chooses to set a specific reimbursement rate—be it the IRS standard or a custom rate—Fyle offers the customization to adapt to your business’s policies.
- Accounting software integrations: Fyle connects with popular accounting software such as QuickBooks, Xero, Sage, and NetSuite. This ensures that mileage expense data flows directly and accurately into your financial systems, simplifying reconciliation.
- Reimburse on time: Automated approval workflows and timely reminders mean that mileage reports are submitted and processed efficiently, ensuring your employees receive their reimbursements without unnecessary delays.
Don't let outdated mileage tracking methods hinder your business. See how Fyle can bring new levels of efficiency, accuracy, and ease to your mileage reimbursement procedures.
