Arkansas mileage reimbursement rates and laws (2025)

Arkansas has established a mileage reimbursement rate of $0.70 per mile for fiscal year 2025, as determined by the Chief Fiscal Officer in alignment with IRS standard mileage rates. This rate governs travel compensation for state employees utilizing personal vehicles for official business.

While private sector employers maintain discretionary authority over reimbursement rates, implementation of comparable compensation protocols can enhance organizational effectiveness and strengthen employee retention initiatives.

Here's a snapshot of year-on-year rate analysis for mileage reimbursement by the IRS.

To calculate applicable mileage reimbursement for Arkansas, use the following:

1. Select the appropriate tax year for your calculation period
2. Enter the total miles driven to compute eligible reimbursement amounts

The calculator below provides precise reimbursement figures based on current rates and specified mileage inputs.

The regulatory framework governing mileage reimbursement in Arkansas establishes distinct parameters for public and private sector employers. Arkansas Code §19-4-904 prescribes mandatory reimbursement protocols for state employees, with rates determined by the Chief Fiscal Officer.

Private sector employers maintain discretionary authority over general mileage reimbursement policies. However, Arkansas Code §11-9-206 establishes specific obligations for medical travel reimbursement under workers' compensation provisions.

The following analysis examines these key statutory requirements and their implications for employer compliance.

Mileage reimbursement guidelines under Arkansas code §19-4-904

Arkansas Code §19-4-904 establishes the regulatory framework for state employee travel reimbursement, mandating compensation at a rate of 70 cents per mile for fiscal year 2025 when personal vehicles are utilized for official business. Reimbursement calculations are based on the minimum distance via major highway routes between the employee's official station and authorized destination.

The statute specifically excludes coverage for vehicle maintenance and operational expenses beyond direct mileage compensation.

Mileage reimbursement per Arkansas workers' compensation code §11-9-206

Arkansas Code §11-9-206 establishes mandatory travel reimbursement provisions under the Workers' Compensation Law, requiring employers to provide mileage compensation for employees seeking medical treatment for work-related injuries. This statute applies across all business sectors, with Workers' Compensation Insurance requirements extending to enterprises employing three or more individuals.

Employer obligations under this provision encompass prompt injury reporting protocols and coordination with insurance carriers for efficient processing of medical expenses and associated travel reimbursements.

Non-compliance with these statutory requirements may result in substantial monetary penalties and regulatory enforcement actions.

Mileage reimbursement under Arkansas's minimum wage act

The Arkansas Minimum Wage Act establishes minimum wage requirements of $11.00 per hour for non-exempt employees. While the statute does not explicitly address mileage reimbursement, the implementation of travel compensation policies holds significant implications for compliance with minimum wage provisions.

Strategic consideration of unreimbursed travel expenses becomes essential in maintaining effective compensation above statutory minimum wage thresholds, as business-related travel costs may impact overall employee compensation calculations.

Arkansas mileage reimbursement rules vs federal guidelines

The regulatory framework for employee mileage reimbursement encompasses distinct state and federal provisions. While the Internal Revenue Service establishes standard mileage rates for federal tax purposes, Arkansas maintains independent rate-setting authority through the Chief Fiscal Officer for state employee travel compensation.

The federal regulatory structure provides baseline guidelines while deferring to state-specific mandates. Arkansas has implemented more comprehensive requirements in certain domains, particularly regarding travel reimbursement provisions under Workers' Compensation statutes.

While Arkansas offers private employers considerable flexibility in establishing mileage reimbursement policies, navigating compliance requirements still presents challenges for growing businesses. At Brex, we understand these pain points and have developed solutions to help you avoid costly mistakes while streamlining your expense management processes. Let's explore the most common compliance pitfalls Arkansas businesses face and how Brex's integrated platform can help you overcome them.

Overlooking workers' compensation travel requirements

Arkansas Code § 11-9-206 mandates that employers cover medical travel expenses for work-related injuries, particularly when employees must travel significant distances to receive specialized care. Many businesses overlook this critical requirement, creating potential liability and employee dissatisfaction.

Underestimating the impact on minimum wage

Arkansas's $11.00/hour minimum wage can be compromised when employees incur unreimbursed business travel expenses, effectively reducing their hourly earnings below the legal threshold. This often-overlooked compliance issue can lead to significant legal exposure.

Using outdated or inconsistent rates

Many Arkansas employers struggle to keep pace with reimbursement rate changes issued by the state's Chief Fiscal Officer or the IRS, leading to inconsistent application of outdated rates.

Poor record-keeping

Vague distance estimates or verbal reports create compliance vulnerabilities that can be costly during audits or disputes. Arkansas Code § 19-4-904 specifies "minimum distance via major highway routes" as the standard for state employees—a best practice many private employers also adopt.

Confusion over who gets reimbursed

Mistakenly reimbursing multiple employees for the same trip creates unnecessary expenses and compliance confusion. While Arkansas doesn't mandate a specific approach for private employers, adopting clear policies prevents disputes and overpayments.

Proactive error prevention reduces processing complications while improving compliance outcomes. The following strategies help enhance documentation quality:

Targeted training

Develop practical, focused training that addresses common documentation mistakes through real-world examples. Introduce these educational sessions during employee onboarding and reinforce key concepts through periodic refresher workshops.

Use automated expense management

Implement expense management software that automatically validates documentation against compliance requirements. These digital solutions can verify required fields, check for data consistency, and flag potential issues before submission.

Standardized forms

Create user-friendly documentation templates that include all necessary elements with clear instructions. These forms should distinguish between required and optional fields while providing guidance on proper completion.

Multi-stage review process

Establish a practical review workflow that catches documentation issues before formal submission. Include both peer review steps and administrative checks that focus on frequently occurring error types.

Immediate feedback loops

Provide clear, direct guidance when documentation problems arise. Offer specific correction instructions and educational tips to prevent similar issues in the future.

Clear written guidelines

Develop accessible policy documents that clearly explain documentation requirements and submission procedures. Include side-by-side examples of correctly and incorrectly completed forms with explanations highlighting the key differences.

Organizations that adopt these practical approaches to preventing documentation errors enjoy smoother processing, better compliance, and increased employee satisfaction with their reimbursement processes. These preventative measures ultimately save time by reducing the need for corrections and resubmissions.

The regulatory structure governing mileage reimbursement in Arkansas establishes a multifaceted framework with distinct applications across public and private sectors. While state employees benefit from clearly defined reimbursement protocols under Arkansas Code §19-4-904, private employers must navigate discretionary implementation strategies while ensuring compliance with workers' compensation provisions that mandate travel compensation for medical treatment of work-related injuries.

Strategic implementation of mileage reimbursement policies serves not merely as a regulatory compliance measure but as an integral component of effective compensation structures. Organizations that establish transparent, equitable reimbursement protocols enhance operational efficiency while simultaneously strengthening employee retention initiatives through demonstrated commitment to fair compensation practices.

Brex's expense management software offers a sophisticated solution for organizations seeking to optimize mileage reimbursement processes through comprehensive automation capabilities. The platform streamlines expense reimbursement workflows, automates approval processes, facilitates seamless receipt capture, and enforces spending policies through intelligent automated controls. By consolidating corporate cards, expenses, reimbursement, bill pay, travel, and business banking accounts within a single platform, Brex enables organizations to achieve unprecedented operational efficiency while maintaining rigorous compliance with applicable regulatory frameworks. Sign up for Brex today to transform your organization's approach to expense management and mileage reimbursement.