STATE OF CONNECTICUT
	OFFICE OF THE STATE COMPTROLLER
Kevin Lembo State Comptroller	55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	Martha Carlson Deputy Comptroller

MEMORANDUM NO. 2011-16

July 11, 2011

TO THE HEADS OF ALL STATE AGENCIES

I. AUTHORITY

The Internal Revenue Service has announced that the standard mileage rate for business use of an automobile has been increased to 55.5 cents per mile effective July 1, 2011 through December 31, 2011. The rate for moving expense purposes has been increased to 23.5 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 55.5 cents per mile is reportable. Do not confuse the standard mileage rate with the GSA rate, which is currently 51 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.

III. QUESTIONS

Questions may be directed to the Comptroller's Office as follows:

 

Payroll Procedures:

 

Payroll Services Division, 860-702-3447;

 

Memorandum Interpretation:

 

Fiscal Policy Division, 860-702-3440.

KEVIN LEMBO
STATE COMPTROLLER

KL:CH

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