MEMORANDUM NO. 2018-02
January 2, 2018
TO THE HEADS OF ALL STATE AGENCIES
| Attention: |
Chief Administrative and Fiscal Officers, Business Managers, Payroll
and Human Resources Officers |
| Subject: |
Standard Mileage Rate Impact on the Reportability of Mileage
Reimbursements |
I. AUTHORITY
- The Internal Revenue Service has announced that the standard mileage rate for
business use of an automobile has been increased to 54.5 cents per mile
effective January 1, 2018. The rate for moving expense purposes has been
increased 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 54.5 cents per mile is reportable. Do not confuse the standard mileage
rate with the GSA rate, which is currently 53.5 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 Active
and Pension 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:
- Active and Pension Payroll Services Division, 860-702-3447;
Memorandum Interpretation:
- Administrative Services Division,
Fiscal Policy Statewide Services Unit, 860-702-3440.
KEVIN LEMBO
STATE COMPTROLLER
KL:ED
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