March 15, 1990
COMPTROLLER'S MEMORANDUM NO. 14 (1989-90)
SUBJECT: MONTHLY MILEAGE ALLOWANCES
Recent research into the requirements
of the Internal Revenue Service indicates that monthly allowances
for use of privately owned automobiles paid pursuant to Section
112.061 (7) (f), Florida Statutes, should be included on the recipient's Form W-2.
In order to capture such payments
for reporting purposes, we have established a new object code,
265000 - Monthly Mileage Allowances. Effective immediately, all
payments of amounts authorized by Section 112.061(7) (f), Florida
Statutes, shall be coded accordingly. Additionally any payments
made this calendar year need to be identified and reported to
the Bureau of State Payrolls. This will permit us to manually
adjust the earnings record for reporting on the employees' Form W-2.
The Internal Revenue Service recently
issued temporary and final regulations which will substantially
compound our problems on these payments effective July 1, 1990.
Our preliminary reading of these regulations indicates that the
State will be required to withhold income tax and social security
tax on these payments. It is not our intent to include items
which are not required to be reported. Because severe penalties
may be imposed for willful failure to report and the state's past compliance has been questioned, it is our intent to demonstrate
a good faith effort to bring the state into compliance.
If you have any questions regarding
the use of this new object code, please call Kay Luger at 488-2922
or Suncom 278-2922. Questions regarding the reporting of such
payments to the Internal Revenue Service should be directed to
Patti Calhoun at 488-7762 or Suncom 278-7762.
