MEMORANDUM NO. 2016-24
December 20, 2016
TO THE HEADS OF ALL STATE AGENCIES
||Chief Administrative and Fiscal Officers,
Business Managers, Payroll and Human Resources Officers
||Standard Mileage Rate Impact on the
Reportability of Mileage Reimbursements
- The Internal Revenue Service has announced that the standard mileage
rate for business use of an automobile has been decreased to 53.5 cents per
mile effective January 1, 2017. The rate for moving expense purposes has
been decreased to 17 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 53.5 cents per mile is reportable. Do not confuse
the standard mileage rate with the GSA rate, which is currently 54 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
earnings code NRM, Account 50800.
- B. Payroll coding information for reportable mileage payments is as
earnings code MIL, Account 50800.
- 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.
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