Connecticut Office of the State Comptroller
Comptrollers' Numbered Memoranda
2020-03: Standard Mileage Rate Impact on the Reportability of Mileage Reimbursements
Date: January 28, 2020
MEMORANDUM NO. 2020-03
January 28, 2020
TO THE HEADS OF ALL STATE AGENCIES
Attention:
Chief Administrative and Fiscal Officers, Business Managers, and 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 decreased to 57.5 cents per mile effective January 1, 2020. The rate for moving expense purposes has been suspended. 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 57.5 cents per mile is reportable. The standard mileage rate should not be confused with the GSA rate, which is currently 57.5 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:
Central Accounts Payable, Policy and Security Unit, 860-702-3440.
KEVIN LEMBO
STATE COMPTROLLER
KL:ED
|
MEMORANDUM NO. 2020-03
January 28, 2020
TO THE HEADS OF ALL STATE AGENCIES
| Attention: | Chief Administrative and Fiscal Officers, Business Managers, and 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 decreased to 57.5 cents per mile effective January 1, 2020. The rate for moving expense purposes has been suspended. 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 57.5 cents per mile is reportable. The standard mileage rate should not be confused with the GSA rate, which is currently 57.5 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:
Central Accounts Payable, Policy and Security Unit, 860-702-3440.
KEVIN LEMBO
STATE COMPTROLLER
KL:ED