Understanding the 2019 Workers' Compensation Mileage Reimbursement Rate

Quick Answer: 2019 Mileage Reimbursement Rate

The standard mileage reimbursement rate for workers' compensation claims in 2019 was $0.58 per mile, aligning with the IRS standard mileage rate for business use that year. However, many states set their own rates, which can be higher or lower than the federal benchmark.

Why Mileage Reimbursement Matters in Workers' Compensation

Mileage reimbursement compensates employees for travel incurred while performing job‑related duties, such as visiting a medical provider, attending a worksite, or returning home after a work‑related injury. Proper reimbursement helps ensure claim costs are accurate, reduces disputes, and keeps employers compliant with state labor laws.

Federal Baseline: IRS 2019 Standard Mileage Rate

The Internal Revenue Service (IRS) publishes an annual standard mileage rate used for business travel deductions. In 2019, the rate was $0.58 per mile. Many workers' compensation programs reference this figure as a baseline, especially in states without a specific statutory rate.

State‑Specific Mileage Rates in 2019

While the IRS rate provides a national reference, several states enacted their own mileage reimbursement statutes for workers' compensation claims. Below is a snapshot of the most common rates:

Employers should verify the current rate in their jurisdiction, as some states update rates annually based on inflation or transportation cost indices.

How Employers Calculate Reimbursement

To determine the reimbursement amount, follow these steps:

• Document the purpose of each trip (e.g., medical appointment, site visit).
• Record the odometer start and end readings or use a reliable GPS log.
• Multiply total miles by the applicable rate (state or IRS).
• Include the reimbursement as a line‑item on the workers' compensation claim or payroll.

Accurate documentation protects both the employee and the employer in case of an audit.

Common Misconceptions

1. All mileage is reimbursable. Only travel directly related to the work‑related injury or claim is eligible. Personal trips or commuting from home to the regular workplace are typically excluded.

2. Employers can set any rate they want. Rates must comply with state law or the IRS standard if the state defers to it. Using a lower rate than mandated can result in penalties.

3. Reimbursement is taxable. Reimbursements that match the authorized rate are generally non‑taxable to the employee.

Impact on Claim Costs and Premiums

Mileage reimbursement is a component of the overall claim cost. Higher mileage rates can increase the total payout, which may affect an employer's workers' compensation insurance premium. Insurers often factor average mileage expenses into premium calculations.

Best Practices for Employers

Implementing a clear mileage reimbursement policy helps avoid disputes:

• Adopt the state‑mandated rate or the IRS rate if no state rate exists.
• Provide employees with a standardized log template.
• Review and approve mileage claims promptly.
• Train supervisors on what qualifies as reimbursable travel.

Resources and Further Reading

For the most up‑to‑date rates and legal requirements, consult:

• State workers' compensation board websites.
• The IRS publication "Standard Mileage Rates" (IRS Publication 463).
• Professional liability insurers' guidelines on claim cost components.