Letterhead - OSC

MEMORANDUM NO. 2015-21

December 29, 2015

TO THE HEADS OF ALL STATE AGENCIES

Attention: Chief Administrative and Fiscal Officers, Business Managers, Payroll and Human Resources Officers
Subject: Standard Mileage Rate Impact on the Reportability of Mileage Reimbursements

I. AUTHORITY

The Internal Revenue Service has announced that the standard mileage rate for business use of an automobile has been decreased to 54 cents per mile effective January 1, 2016. The rate for moving expense purposes has been decreased to 19 cents per mile. The standard mileage rate is used as a criterion for determining the W-2 reportability of mileage reimbursements made to employees for the business use of their personal vehicles. The excess of an employee's mileage payment reimbursed at a rate higher than the standard mileage rate of 54 cents per mile is reportable. Do not confuse the standard mileage rate with the GSA rate, which is currently 57.5 cents.

II. 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:
earnings code NRM, Account 50800.

B. Payroll coding information for reportable mileage payments is as follows:
earnings code MIL, Account 50800.

III. QUESTIONS

Questions may be directed to the Comptroller's Office as follows:
 
Payroll Procedures:
 
Payroll Services Division, 860-702-3447;
 
Memorandum Interpretation:
 
Administrative Services Division,
Fiscal Policy Statewide Services Unit, 860-702-3440.

KEVIN LEMBO
STATE COMPTROLLER

KL:CH

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