The IRS has established a mileage reimbursement rate of $0.70 per mile for 2025, which applies to state employees in Rhode Island. Private employers maintain flexibility in setting their own reimbursement rates for regular business travel. However, when injured employees travel to rehabilitation services, Rhode Island law requires private employers to use the current IRS rate for reimbursement.

The following table presents historical IRS standard mileage reimbursement rates for reference purposes.

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 Rhode Island, 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.

Rhode Island state government employees get mileage reimbursement based on policies like the Office of Accounts and Control Policy A-46ET, which follows the IRS standard rate. For private sector employers, the rules around mileage compensation are different.

While private businesses aren't generally required to reimburse employees for mileage, the Rhode Island Workers' Compensation Act does create specific situations where this becomes mandatory.

Employers also need to consider the Rhode Island Minimum Wage Act. This law can affect mileage reimbursement practices when business travel expenses would effectively drop an employee's pay below the state minimum wage. Let's look at these legal requirements and what they mean for businesses in Rhode Island.

Mileage reimbursement policy A-46ET for state employees

Rhode Island government agencies apply Policy A-46ET from the Office of Accounts and Control when processing mileage reimbursements for state employees. This policy adopts the IRS standard rate for calculating reimbursement amounts.

The policy stipulates that state employees receive compensation based on the most direct route between starting and ending locations. The system automatically calculates this shortest viable distance.

State employees can request adjustments to these calculated distances when circumstances warrant longer routes. Valid justifications include traffic detours, road closures, accidents or situations where a longer route significantly reduces travel time. Employees must document their reasoning when submitting such requests through the reimbursement system.

Code § 28-33-41 of the workers' compensation law for mileage reimbursement

Rhode Island Workers' Compensation Act Code § 28-33-41 mandates that employers provide transportation cost reimbursement to injured workers attending rehabilitation treatment. The law specifically requires businesses to pay mileage at the current IRS rate when employees use personal vehicles for these medical visits.

This obligation applies whenever an injured employee needs to travel for rehabilitation services related to a workplace injury. Private employers must cover reasonable transportation expenses in these situations.

The penalties for non compliance with this provision are substantial under Code § 28-36-15. Employers who fail to meet these requirements face potential fines up to $1,000 for each day of violation. Additionally, serious infractions may result in felony charges carrying imprisonment terms of up to two years.

Rhode Island minimum wage considerations

Rhode Island Minimum Wage Act under Code § 28-12-3 currently establishes $15.00 per hour as the minimum wage for workers in the state.

While this legislation contains no explicit provisions regarding mileage reimbursement, an important relationship exists between these two compensation areas. When employees utilize their personal vehicles for work purposes without adequate reimbursement, their effective hourly wage may fall below the statutory minimum after accounting for these business expenses.

Employers can mitigate this risk by implementing reasonable mileage reimbursement policies. Providing fair compensation for work related vehicle use helps ensure overall employee compensation remains compliant with minimum wage requirements while supporting staff financial wellbeing.

Effective mileage reimbursement policies offer Rhode Island businesses more than just legal compliance; they create transparency, enhance employee satisfaction, and minimize disputes. Below are specific tips tailored to help Rhode Island employers establish and manage effective mileage reimbursement practices.

Clearly define eligible mileage expenses

Make sure your employee mileage reimbursement policy clearly outlines which travel activities qualify for reimbursement, such as client meetings, off-site training sessions, and deliveries. Being specific helps employees understand when they should track their mileage for work purposes. Explicitly state that regular commuting between home and office generally isn't eligible for reimbursement, which helps reduce confusion and prevents unnecessary expense claims. This clarity benefits both your accounting team and employees who need to know when they can seek compensation for vehicle use.

Adopt the IRS standard mileage rate as a benchmark

Consider using Rhode Island's standard (IRS-aligned) mileage rate ($0.70 per mile in 2025) to simplify expense tracking and tax reporting for your organization. This approach aligns with state government practices and creates consistency across your expense reimbursement processes. If your company chooses a different rate, clearly communicate any variations to employees, including potential tax implications that might apply if reimbursements exceed the IRS standard rate. Providing this information helps employees understand how their expense reporting affects their overall compensation.

Use consistent and accurate mileage tracking methods

Encourage employees to use standardized logs or digital tracking apps to maintain accurate records of their business travel. These tools help create reliable documentation that supports both expense claim processing and potential tax deductions. Establish regular submission schedules for mileage reimbursement claims, whether weekly, bi-weekly, or monthly, to enhance accuracy and simplify expense management. Consistent tracking reduces errors and administrative burdens while providing better data for budgeting and financial planning.

Educate employees on mileage reimbursement rules

Include detailed information about your mileage reimbursement procedures in employee handbooks and incorporate this topic into onboarding processes for new hires. This approach ensures everyone understands the expectations from the start. Consider conducting periodic training sessions to clearly explain mileage tracking requirements, reimbursement timelines, and relevant tax considerations. When employees understand how to properly document and submit expense claims, the entire reimbursement process becomes more efficient for everyone involved.

Ensure compliance with Rhode Island workers' compensation laws

Clearly document your company's compliance with Code § 28-33-41, explicitly detailing expense reimbursement policies for travel related to workplace injury rehabilitation. This specific legal requirement deserves special attention in your company policies. Conduct regular audits of your reimbursement practices related to Workers' Compensation claims to ensure ongoing compliance and minimize liability risks associated with these statutorily required payments. Remember that non-compliance penalties can be substantial, making this an essential area for careful management.

Monitor mileage expenses in relation to Rhode Island's minimum wage

Communicate to employees that mileage reimbursements help maintain compliance with Rhode Island's $15.00/hour minimum wage by ensuring their effective earnings don't fall below this threshold due to unreimbursed travel costs. This demonstrates your commitment to fair compensation practices. Implement periodic reviews to verify that employees' net compensation remains compliant with minimum wage laws after factoring in business travel expenses. This proactive approach helps prevent potential wage violations while supporting employee financial wellbeing.

Rhode Island's mileage reimbursement regulations establish clear expectations for private employers. The state's laws includes specific mandates under workers' compensation law requiring businesses to reimburse injured employees at IRS rates when traveling to rehabilitation appointments, while allowing more discretion for routine business travel reimbursement policies.

These considerations shape how Rhode Island employers develop appropriate mileage compensation strategies that balance compliance, cost management and workforce satisfaction. A well structured approach addresses legal requirements while supporting employee retention and productivity, protecting businesses from potential wage disputes or compliance penalties.

Brex's expense management software offers Rhode Island employers a comprehensive solution for handling mileage and other reimbursements with minimal administrative burden. The platform automates the entire expense process from receipt capture to approvals while enforcing company spending policies automatically. By combining corporate cards, expense management, bill pay, startup banking, and travel booking into a single unified platform, Brex eliminates the complexity typically associated with expense management. Sign up for Brex today to streamline your reimbursement processes and ensure compliance with Rhode Island regulations.