STATE OF CONNECTICUT
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MEMORANDUM NO. 2005-45
December 29, 2005
TO THE HEADS OF ALL STATE AGENCIES
|Attention:||Chief Administrative and Fiscal Officers, Business Managers, Payroll and Personnel Officers|
|Subject:||Mileage Reimbursements Paid to State Employees|
The Internal Revenue Service has announced that the standard mileage rate for business use of an automobile has been decreased to 44.5 cents per mile effective January 1, 2006. The rate for moving expense purposes has been decreased to 18 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 44.5 cents per mile is reportable. Do not confuse the standard mileage rate with the GSA rate, which is currently 48.5 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.
Questions may be directed to the Comptroller's Office as follows:
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