Mileage Reimbursement for Wisconsin

Mileage Reimbursement

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When it comes to mileage reimbursement in Wisconsin, it’s more than just the miles you drive—it’s about making sure you’re in line with the IRS standard and staying compliant with both federal and state guidelines. The 2024 IRS standard mileage rate is set at 67 cents per mile, and this applies to business travel throughout the state, whether you’re in Madison or managing teams all over the country.

But let’s dig deeper into what that means for you.

Federal vs. State mileage reimbursement standards

First, the IRS standard mileage rate is updated each year, and the cents per mile rate covers business use of your personal vehicle—from cars to pickups. This rate accounts for everything from gas mileage reimbursement to general wear and tear on your car. Wisconsin businesses typically follow the IRS guidelines, but if you’re working in state government, you might have to follow additional state employee rules.

For example, Wisconsin’s Division of Personnel Management (DPM) and the Department of Administration (DOA) set specific guidelines on mileage reimbursement rates for state workers. These rates are approved by the Joint Committee on Employment Relations, so depending on your situation, you may see a few variations from the standard IRS rate.

Who gets mileage reimbursement?

If you’re an employee driving for work-related reasons, your employer should be covering your mileage expenses. This applies across industries—whether you’re a medical worker driving for Medicaid medical transportation, a salesperson on the road, or a tech working service calls across the state.

For independent contractors and self-employed individuals, mileage used for business purposes can be claimed as a deductible on your taxes by filing Schedule A. Keep detailed logs of each trip for compliance.

Tax implications

Here’s where it can get tricky. Mileage that’s reimbursed by an employer for business travel is non-taxable—you won’t see it on your W-2. But if you’re not getting reimbursed for your business use of a vehicle, you can still deduct those miles using the IRS rate. The key here is to ensure you’ve got solid records—think detailed trip logs, including dates, distances, and the business purpose of each drive. Otherwise, you’re leaving yourself open to IRS scrutiny.

Reimbursement best practices for Wisconsin employers

Whether you’re running a small business or managing a larger team, it’s essential to stay on top of your mileage reimbursement practices. It starts with tracking. A solid trip log system makes a huge difference, ensuring all mileage expenses are accounted for.

You’ll also want to decide between different reimbursement models like Fixed and Variable Rate (FAVR) or Cents Per Mile (CPM). Some companies prefer FAVR for its flexibility in accounting for fluctuating fuel prices, while others stick with CPM for its simplicity.

For state employees, Wisconsin’s Division of Personnel Management lays out clear guidelines. You’ll also need to pay attention to per diem rates for out-of-town travel, which is another piece of the reimbursement puzzle.

Common mistakes to avoid

Some employers get tripped up when they either over-reimburse or under-reimburse their employees. The IRS is strict about overpayments, and underpayments can lead to frustrated staff. Another pitfall? Poor documentation. Without clear, consistent records, you could run into issues with both the IRS and your team.

Special mileage reimbursement considerations in Wisconsin

For state employees and others working in charitable organizations, mileage may be reimbursed at a different rate or under different terms. Those working in Madison on state business might be subject to the rules from the Department of Administration, which can sometimes differ slightly from the federal IRS rate. It’s always a good idea to check with the Division of Personnel Management for specific details if you fall under these categories.

How Cardata can help

At Cardata, we simplify mileage tracking and reimbursement, making sure businesses stay compliant with IRS rules. If you’re dealing with complex mileage reimbursement laws or juggling multiple modes of transportation, we’ve got solutions to keep everything streamlined. From detailed logs to gas mileage reimbursement, we cover it all.

Conclusion

Mileage reimbursement doesn’t have to be complicated, but it does need to be accurate. Whether you’re working under Wisconsin guidelines or following the IRS standard nationwide, clear records and understanding the rules are crucial. Ensure your team is getting reimbursed properly, and if you need help setting up a solid system, contact us today. We’ll make sure you’re on the right track.