|STATE OF CONNECTICUT|
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MEMORANDUM NO. 96-04
January 30, 1996
TO THE HEADS OF ALL STATE AGENCIES
|Attention:||Chief Administrative and Fiscal Officers,
Business Managers, and Payroll and Personnel Officers
|Subject:||Reportability of Mileage Reimbursements Paid to
The Internal Revenue Service has announced that the standard mileage rate for business use of an automobile will be 31 cents effective January 1, 1996. The standard mileage rate is used as a criteria 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 31 cents per mile is reportable. Do not confuse the standard mileagerate with the GSA rate, which is currently 30 cents.
A CO-17XP, Employee Voucher, is completed when reimbursing an employee at or below the standard mileage rate. The payment is processed through the Accounts Payable Division.
When an employee's mileage payment is reimbursed at a rate higher than the standard mileage rate, the excess amount is to be processed through the Payroll Services Division. The amount reportable would be the difference between the rate paid and 31 cents (Example: Employee's reimbursement rate = 32 cents/mile, subtract the difference 32 - 31 cents = 1 cent and multiply by the number of miles reimbursed). Please refer to the State Accounting Manual, Expenditure Section 8.3 B, for additional information on the reportability of payments made to employees.
Questions may be directed to the Comptroller's Office as follows:
Payment Procedures - Accounts Payable Division -
566-3939 or 566-8978
Payroll Procedures - Payroll Services Division -
Back to Comptroller's Home Page
Back to Index of Comptroller's Memoranda