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| Attention: | Chief Administrative and Fiscal Officers, Business Managers, and Payroll and Human Resources Officers |
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| 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 58 cents per mile effective January 1, 2019. The rate for moving expense purposes has been increased to 20 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 58 cents per mile is reportable. Do not confuse the standard mileage rate with the GSA rate, which is currently 54.5 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,
Fiscal Policy Statewide Services Unit, 860-702-3440.
KEVIN LEMBO
STATE COMPTROLLER
KL:RE
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