NO: 99-08-OMB

ORIGINATING AGENCY: OMB-CENTRALIZED PAYROLL

EFF DATE: 11-1-98

EXP DATE: INDEFINITE

SUPERSEDES:

SUBJECT: COMMUTATION MILEAGE PAYMENTS ACCOUNTING AND TAXABILITY

ATTENTION: DIRECTORS OF ADMINISTRATION, FISCAL OFFICERS, PAYROLL OFFICERS

FOR INFORMATION CONTACT: MYRON J. SEDOR
PHONE: (609) 292-2489

It has been determined that payments to employees for commutation
mileage, in accordance with the various bargaining agreements, is
taxable.

APPLICABILITY

The following negotiating units, title codes and titles are entitled to
payments for commutation mileage in excess of 20 miles, in accordance
with the bargaining agreements currently in effect.

Negotiating Unit "F" - Law Enforcement Unit

Title Code Title

32051 Marine Police Officer
32052 Senior Marine Police Officer
32081 Conservation Officer 3
32092 Ranger 1
32332 Police Officer, Health Care Facility
32991 Inspector ABC
32992 Senior Inspector ABC

Negotiating Unit "J" - Superior Officers Law Enforcement Unit

Title Code Title

32083 Conservation Officer 1
32254 Police Lieutenant, Health Care Facility

Negotiating Unit "K" - Primary Level Supervisory Law Enforcement
Unit

Title Code Title

32053 Principal Marine Police Officer
32082 Conservation Officer 2
32093 Chief Ranger
32094 Chief Ranger 1
32334 Police Sergeant, Health Care Facility

Negotiating Unit "T" - State Troopers Unit

Title Code Title

31851 Trooper
31852 Trooper 2
31861 Trooper 1

ACCOUNTING

In order to facilitate proper accounting and reporting, all payments to
employees for commutation mileage in accordance with the above enumerated
employment contracts must be processed and recorded in the New Jersey
Comprehensive Financial System (NJCFS) using expense object 3031 -
Commutation Mileage. Likewise, any cash receipts recording refunds of
this type of expenditure must be credited to expense object 3031, just as
the original payment was coded. It is equally important that the
employee's social security number (and not the miscellaneous vendor
number) be referenced in the Vendor/Provider field of the cash receipt.

CENTRALIZED PAYROLL

The value of these commutation mileage payments constitutes income for
tax purposes. In order for Centralized Payroll to process the necessary
information, the annual reporting period will be based on the check date
of payments recorded in NJCFS for the period November 1 through October
30, and the taxable amount will be applied to the affected employee's
payroll records on Regular Pay Period 26. This amount will be displayed
in the box entitled "Taxable Benefit" on the check/direct deposit pay
stub and will be included with the year to date Federal, State, Social
Security (FICA) and Medicare wages. Additional Social Security and
Medicare deductions will be taken as appropriate, however no Federal or
State income taxes will be withheld. All of this information will also
be included on the employee's IRS Form W-2.