The Internal Revenue Service has established the 2025 standard business mileage rate at $0.70 per mile, serving as the federal benchmark for business travel expenses. Under West Virginia law, state employees must receive this amount and private employers retain flexibility in their reimbursement policies.

Below are West Virginia mileage reimbursement rates for 2025 and previous years, which follow the IRS standard rates:

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 West Virginia, 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.

Though private businesses in West Virginia aren’t legally required to reimburse employee mileage, it’s essential to ensure business travel expenses don’t reduce wages below minimum wage requirements. In West Virginia, the minimum wage for 2025 is set at $11, which is established by §21-5C-2.

Private businesses in West Virginia are also subject to Code §23-4-8 of the Workers’ Compensation Act, which requires employers to reimburse injured workers for travel expenses related to medical treatment.

Legal risks of non-compliance

Failing to meet minimum wage requirements can be consequential for your organization, including fines, litigation, and back-pay obligations. Businesses should carefully evaluate how unreimbursed travel expenses might reduce employee earnings below minimum thresholds and what this implies for their overall compliance.

Understanding these regulations can help safeguard your company from potential legal complications while also creating a workplace environment where employees receive fair treatment.

Developing detailed and transparent mileage reimbursement policies can help West Virginia businesses prevent misunderstandings and maintain fair compensation for employees. Consider these recommendations to establish a policy that benefits your organization:

Clearly define eligible travel

Establish precise criteria for business-related travel, including eligible trips, submission deadlines, and required documentation. Within this policy, businesses can also establish when expense reimbursements will be paid so employees know when to expect to be reimbursed. Clear policies can also differentiate business-related travel from regular commuting or personal trips.

Choose a reimbursement rate thoughtfully

Assess your organization's financial resources alongside IRS recommendations. Since private businesses can implement any reimbursement rate, your business can evaluate local fuel and maintenance costs to determine a rate that works best for the company. Nonetheless, while flexibility exists, keep in mind that rates must keep employees’ hourly wages above the West Virginia minimum of $11 an hour.

Document mileage accurately

Implement processes requiring employees to record their mileage using logs or digital applications. Precise records minimize errors, facilitate reimbursements, and provide protection during potential audits. Expense management software can automate this process and eliminate the potential for manual errors.

Regularly update your policy

Conduct annual reviews of your mileage policy to incorporate IRS rate adjustments, economic changes, and evolving business requirements. While conducting audits, also consider changes to West Virginia’s minimum wage law, which increases annually. Communicate modifications clearly to your workforce.

Educate employees on policy details

Ensure your team understands reimbursement procedures, qualifying expenses, and necessary documentation. By implementing these strategies, you strengthen your business's legal and financial position while promoting transparency, equity, and workplace satisfaction.

West Virginia's approach to mileage reimbursement allows for balance between operational flexibility and workforce support. While state law gives private employers discretion in establishing reimbursement practices, appropriate compensation for business travel can function as both a retention strategy and protection against potential compliance complications. The $0.70 per mile IRS standard for 2025 establishes a good reference point, and businesses must consider the tax implications when exceeding this threshold.

Expense management automation software from Brex addresses these challenges by automating your business’s reimbursement workflow. Brex optimizes expense reimbursement processes, approval, and receipt management while enforcing expense policies without manual oversight. Brex also seamlessly integrates into existing accounting software, simplifying tax preparation and financial planning. Sign up for Brex today to ease the administrative burden of mileage reimbursement and automate your company’s policy.