For 2025, government employees in Utah are reimbursed at $0.70 per mile when using personal vehicles for official functions. This figure represents the most recent adjustment authorized in accordance with federal standards.

Below are the current Utah mileage reimbursement rates that align with IRS standards for 2025, accompanied by an analysis showing the year-over-year rate changes.

Note: Private 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 Utah, 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.

Utah's Code R25-7-16 requires state agencies to reimburse employees who use their personal vehicles while conducting official state business. The following provides a more comprehensive examination of Utah's mileage reimbursement provisions and their implications.

Code R25-7-16 for state employees' mileage reimbursement

Code R25-7-16 specifies that state employees who drive personal vehicles for official responsibilities receive compensation at Utah's approved rate of $0.70 per mile.

The statute establishes specific guidelines for various travel scenarios:

• Standard reimbursement at $0.70 per mile when state employees use private motor vehicles
• Reduced rate of $0.21 per mile if a government-furnished automobile is available but not used
• Alternative rate of $0.68 per mile when employees use private motorcycles

Regarding commuting expenses, the state does not reimburse travel between residence and workplace or other non-official travel. Reimbursement is restricted to the owner of the vehicle, regardless of the number of passengers present.

Workers' Compensation regulations

Utah's Workers' Compensation provisions outline specific mileage reimbursement standards that merit consideration. Though not directly applicable to all private employer situations, alignment with these regulations help ensure compliance with Utah's mandatory Workers' Compensation Act.

The stipulations in this code establish that employers must provide mileage reimbursement when workers travel to receive medical examinations or treatments for work-related injuries. This ensures employees are not financially burdened by injuries sustained on the job.

Utah's Minimum Wage Act considerations

While Utah follows the federal minimum wage standard, its provisions carry significant implications for employee reimbursement practices. Employers must verify that an employee's total compensation remains at or above the minimum wage when factoring in unreimbursed travel expenses.

Managing employee mileage reimbursement in Utah can require both regulatory knowledge and practical knowledge to implement these policies effectively. For businesses that need to comply with Workers’ Compensation regulations and minimum wage requirements, a mileage reimbursement program is often a legal necessity.

Establish a clear mileage reimbursement policy

Your policy should distinguish between commuting miles, which are typically not reimbursable, and business miles. To prevent confusion, include specifics about emergency travel, training-related trips, and multi-site work arrangements.

Use digital mileage tracking tools

Expense management software can automate mileage calculations, reducing errors and administrative burden. These tools can track routes, calculate distances accurately, and maintain digital records for compliance purposes.

Establish consistent documentation requirements

Require essential information for each trip: date, purpose, start/end locations, and total miles. Consistent documentation protects both employers and employees in case of audits or disputes.

Set regular reimbursement schedules

Process mileage reimbursements on a consistent schedule that aligns with your payroll cycle. Clear submission deadlines help to manage cash flow, establish clear expectations among employees, and ensure timely payments.

Understand the tax implications

Structure your program as an accountable plan to keep reimbursements non-taxable when using the standard IRS rate. Document any excess payments that might be considered taxable income.

Review and update rates annually

Evaluate your reimbursement rates yearly against IRS standards and industry benchmarks to remain competitive and fair to employees. In many cases, expense management automation software can simplify this process and ensure you remain compliant.

Utah's mileage reimbursement laws have implications for both public and private employers. While state agencies must adhere to the requirements under Code R25-7-16, private businesses retain discretion in establishing their own reimbursement policies. Nevertheless, private businesses may need to consider these laws as they pertain to Workers' Compensation regulations and minimum wage standards.

For businesses operating in Utah, strategic implementation of mileage reimbursement practices represents sound fiscal management. Reimbursement policies can mitigate potential regulatory complications and enhance employee satisfaction and retention. This can include creating documentation with clear procedures for calculating eligible distances, establishing transparent approval processes, and maintaining comprehensive records of all reimbursements.

Keeping track of Utah's mileage rules requires paperwork and careful attention to details. With Brex’s expense management software, businesses can automate much of this process, which means fewer mistakes and better compliance with the law. Brex allows business to set spending limits and can generate necessary tax documentation. Sign up for Brex today to streamline your mileage reimbursement.