Missouri businesses handling mileage reimbursement in 2025 should know the IRS rate is now $0.70 per mile.

This is different from what Missouri pays its state employees - they get $0.655 per mile when using mid-size sedans. State workers using fleet vehicles receive even less at $0.34 per mile.

Many private companies just follow the IRS rates because it's easier and offers tax benefits. Just remember that if you pay employees more than the IRS rate, that extra money becomes taxable income for them.

Note: Organizations have flexibility to reimburse employees at rates that differ from the IRS standard. However, any reimbursement exceeding the IRS rate will be classified as taxable income to the employee.

To calculate applicable mileage reimbursement for Missouri, do 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.

Missouri employers have different rules about travel pay depending on whether they're in the public or private sector.

State and private employers follow separate laws for mileage reimbursement programs. We'll explain Missouri's specific reimbursement regulations below so you can see how to properly pay for employee travel expenses.

When you understand these differences, you can create reimbursement practices that fit your organization while still managing costs and keeping employees happy.

State employees and CSR 10-11.010

Missouri state agencies must adhere to established protocols under CSR 10-11.010 when providing travel compensation to government employees. The current year's reimbursement structure follows the state fleet rate of 34.0 cents per mile.

This standardized approach serves two primary functions for state departments. First, it provides equitable compensation to employees who undertake necessary travel for official government business. Second, the rate structure accurately reflects the actual operational expenses associated with vehicle usage in state service.

State managers implementing these guidelines maintain both regulatory compliance and financial accuracy in their departmental accounting practices.

Private employees and the Missouri wage act

Private sector employers in Missouri should note an important distinction in state regulations. While Missouri law does not explicitly require mileage reimbursement for employees in private businesses, the Missouri Wage Act indicates employers should cover travel expenses that primarily benefit the company.

This law creates potential liability for businesses. When employers do not reimburse necessary travel costs, they risk reducing an employee's effective compensation below the state's 2025 minimum wage threshold of $13.75 per hour. Such situations could expose companies to potential wage disputes under state labor regulations.

Missouri workers' compensation law

Missouri Workers' Compensation law requires employers to pay for travel when employees need medical treatment for workplace injuries. If workers have to go outside their main county of employment for medical care, companies must reimburse them for up to 250 miles each way.

This rule protects employees financially so they don't have to pay for transportation to treat injuries they got while doing their jobs. When Missouri businesses handle these reimbursements properly, they not only follow the law but also help their employees recover.

Missouri vs federal mileage reimbursement laws

Missouri businesses need to create mileage reimbursement policies that work with both state rules and federal guidelines.

Federal rules offer basic guidance, often pointing to the IRS rate as a good standard but not requiring it. Federal law only makes you reimburse employees when their travel costs would drop their pay below minimum wage.

Missouri's laws, especially in workers' compensation, generally have more specific rules than federal ones. You need to follow these state requirements carefully, particularly to make sure employee pay stays above Missouri's $13.75 hourly minimum wage after they pay for work-related travel.

Clear communication about your employee mileage reimbursement policy helps Missouri businesses avoid confusion, ensure proper documentation, and maintain employee satisfaction. When employees fully understand how and when they'll be reimbursed for business travel, they're more likely to follow procedures correctly and feel valued by your company.

Clearly documented reimbursement guidelines

Create a written mileage reimbursement policy that employees can easily access through your employee handbook or company intranet. This documentation should clearly state your reimbursement rate (whether you follow the IRS rate of $0.70 per mile or Missouri's state employee rate of $0.655), eligibility requirements, and submission deadlines. Include specific examples relevant to your industry to help employees understand when they should track mileage.

Regular employee training and updates

Incorporate mileage reimbursement training into your onboarding process for new hires and provide refresher sessions whenever you update your policy. Schedule brief training updates when rates change (typically annually) or when you notice common reporting errors. Targeted training for field employees who frequently travel between Missouri counties can be particularly valuable.

Use of simple, easy-to-use technology

Implement user-friendly tools for tracking and reporting business mileage such as mobile apps with GPS functionality. These tools reduce manual calculation errors and make the process more convenient for employees who travel frequently. Even simple spreadsheet templates can significantly improve accuracy compared to paper logs.

Transparent and consistent reimbursement schedule

Establish a predictable schedule for processing mileage reimbursements and clearly communicate this timeline to employees. Clearly state when employees must submit claims and when they can expect payment. This transparency builds trust and reduces inquiries about reimbursement status.

Encouraging employee feedback on the mileage process

Regularly solicit input from employees about your mileage reimbursement process through surveys, dedicated email addresses, or team meetings. Those who frequently travel for work often identify practical improvements that can make your policy more effective. When employees suggest viable improvements, implement them promptly and communicate the changes.

Missouri businesses handling mileage reimbursement need to pay attention to both state and federal guidelines. While private employers can create their own reimbursement policies, they still need to watch out for minimum wage issues and follow Missouri's specific workers' compensation rules.

When employers understand these details, they can create reimbursement approaches that work for both their budget and their employees' needs. The different rules for state employees, private companies, and workers' compensation create a balance between taking care of employees and managing business costs in Missouri.

Brex's expense management software makes reimbursement simpler for businesses tired of complex processes. Their platform automates everything from tracking expenses to approving reimbursements and capturing receipts. You can set spending rules that apply automatically, and everything works together in one place - your corporate cards, expense tracking, reimbursements, bill payments, travel bookings, and startup banking. Sign up for Brex today to improve how your business handles mileage and all other expenses.