The Seal of the Office of the State Comptroller

MEMORANDUM NO. 99-10

March 23, 1999

TO THE HEADS OF ALL STATE AGENCIES

ATTENTION: Chief Administrative and Fiscal Officers, Business Managers, and Payroll and Personnel Officers
SUBJECT: Mileage Reimbursements Paid to State Employees
  1. AUTHORITY
    The Internal Revenue Service has announced that the standard mileage rate for business use of an automobile has been reduced to 31 cents per mile effective April 1, 1999. The rate for moving expense purposes remains at 10 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 31 cents per mile is reportable. Do not confuse the standard mileage rate with the GSA rate, which is currently 32.5 cents.
  2. PAYROLL PROCEDURES
    A CO-17XP-PR, Employee Payroll Reimbursements, is completed when reimbursing an employee for mileage. 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 reportable. The amount reportable would be the difference between the rate paid and 31 cents (Example: Employee's reimbursement rate = 32.5 cents/mile, subtract the difference 32.5 - 31 cents = 1.5 cents 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.
  1. Payroll coding information for reportable mileage payments is as follows:
  1. On-line: Screen 381 or 382, R1, Amount, 1V, SID 0002, Major/Minor 02630.
  2. Remote Job Entry: ZT Transaction: Same as above.
  1. Payroll coding information for non-reportable mileage payments is as follows:
  1. On-line: Screen 381 or 382, R1, Amount, 2Z, SID 0002, Major/Minor 02630.
  2. Remote Job Entry: ZT Transaction: Same as above.
  1. 9916 TUITION AND TRAINING FUND
    The procedure for reportable reimbursements paid from the 9916 Tuition and Training Fund remains the same. Current procedures require reportable payments to be submitted on a separate CO-17 XP. Reportable mileage reimbursements should be included on the separate CO-17XP along with any other reportable expenses. The appropriate union SID should be used.
  2. QUESTIONS
    Questions may be directed to the Comptroller's Office as follows:

    Payroll Procedures:
    On-line: Payroll Services Division, (860) 702-3463
    Remote Job Entry: Payroll Services Division, (860) 702-3462

    9916 Tuition and Training Payments Procedures:
    Comptroller's Business Office, (860) 702-3335

 

 

NANCY WYMAN
STATE COMPTROLLER

NW:CH:jrs

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