MEMORANDUM NO. 98-3
January 30, 1998
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 State Employees|
The Internal Revenue Service has announced that the standard mileage rate for business use of an automobile will be 32.5 cents per mile effective January 1, 1998. The rate for moving expense purposes is 10 cents per mile. 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 32.5 cents per mile is reportable. Do not confuse the standard mileage rate with the GSA rate, which is currently 31 cents.
A CO-17XP-PR, Employee Payroll Reimbursements, is completed when reimbursing an employee at or below the standard mileage rate. The payment is processed through the Payroll Services 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 32.5 cents (Example: Employee's reimbursement rate = 33.5 cents/mile, subtract the difference 33.5 - 32.5 cents = 1 cent and multiply by the number of miles reimbursed). Please refer to Comptroller's Memorandum No. 97-57 for additional information on the reportability of payments made to employees.
Questions may be directed to the Comptroller's Office as follows:
|Payroll Procedures:||Payroll Services Division
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