STATE OF CONNECTICUT
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MEMORANDUM NO. 2005-34
September 21, 2005
TO THE HEADS OF ALL STATE AGENCIES
|Attention:||Chief Administrative and Fiscal Officers, Business Managers, Payroll and Personnel Officers|
|Subject:||Increase in Mileage Reimbursement Rates|
The purpose of this memorandum is to notify agencies of increases in the General Services Administration (GSA) mileage reimbursement rate and the standard mileage rate and to clarify what each rate is used for.
In accordance with the Federal Register dated September 15, 2005 and IR-2005-99 dated September 9, 2005 from the Internal Revenue Service.
III. GSA MILEAGE RATE
The General Services Administration of the Federal Government sets the mileage reimbursement rate for federal employees. The GSA rate is the mileage reimbursement rate for use of a privately owned vehicle on official work-related travel. The General Services Administration mileage reimbursement rate is increased from 40.5 cents to 48.5 cents per mile for use of privately owned automobiles when authorized as advantageous to the Government. By Federal law, the GSA mileage reimbursement rate cannot exceed the IRS standard mileage rate.
IV. IMPACT ON STATE MILEAGE REIMBURSEMENT RATES
The GSA rate is used as the mileage reimbursement rate for many State of Connecticut collective bargaining units. The "mileage reimbursement rate" under many State collective bargaining unit agreements is subject to upward adjustment within 30 days of the revision to the Federal GSA rate. Agencies should refer to the applicable collective bargaining agreements for details.
The mileage reimbursement rate increase is effective for travel on or after September 1 through December 31, 2005 for employees using personally owned vehicles for official State business.
The increased rate applies to non-represented employees and the following collective bargaining units: NP-2, NP-3, NP-4, NP-5, NP-6, NP-7, NP-8, P-1, P-2, P-3A, P-3B, P-4 and P-5.
The above provisions do not necessarily apply to Managerial and Confidential employees. For Managers and Confidential employees: "Mileage reimbursement will be at the prevailing rate authorized by the Commissioner of Administrative Services with the approval of the Secretary of the Office of Policy and Management." The Office of Labor Relations will notify agencies when the managerial and confidential rate is changed.
Managerial employees governed by the Boards of Higher Education are notified by their respective boards.
V. STANDARD MILEAGE RATE
The standard mileage rate is set by the Internal Revenue Service for business use of an automobile. The Internal Revenue Service has announced that the standard mileage rate for business use of an automobile has been increased to 48.5 cents per mile effective from September 1 through December 31, 2005. The rate for moving expense purposes has been increased to 22 cents per mile.
The standard mileage rate is used as a criterion for determining W-2 reportability of mileage reimbursements made to employees for business use of personal vehicles. The excess of an employee's mileage payment reimbursed at a rate higher than the standard mileage rate of 48.5 cents is reportable.
VI. PAYROLL PROCEDURES
The CO-17XP-PR, Employee Payroll Reimbursement form is to be completed when reimbursing an employee for mileage. The payment is processed through the Payroll Services Division.A. Payroll coding information for non-reportable mileage payments is as follows:
B. Payroll coding information for reportable mileage payments is as follows:
VII. UNION-FUNDED TRAVEL
The procedure for reimbursements paid from union funds is outlined in the Union-Funded Travel Procedures which can be found on the Comptroller's website at:
Please direct questions or requests for assistance as follows:
Personnel Issues: Agency Personnel Officer;
Payroll Procedures: Payroll Services Division, (860) 702-3463;
Memorandum Interpretation: Fiscal Policy Division, (860) 702-3440.
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