Administrative Procedure 8.852 Administrative Procedure 8.852


Personal Automobile Mileage Voucher


Administrative Procedure Chapter 8, Business and Finance
Administrative Procedure AP 8.852, Personal Automobile Mileage Voucher
Effective Date:  April 2016
Prior Dates Amended:  January 1997, November 2001    
Responsible Office: Office of the Vice President for Budget and Finance/Chief Financial Officer
Governing Board and/or Executive Policy: RP 8.208, Travel; EP 8.208, Travel; EP 1.102, Authority to Manage and Control the Operations of the Campus 
Review Date:  April 2019

I. Purpose

To provide personal automobile mileage and parking fee reimbursement procedures under the authority of the Board of Regents Policy 8.208, and in accordance with the Internal Revenue Service requirements and collective bargaining agreements.

The DISB-33, Personal Automobile Mileage Voucher (Attachment 1) serves as a support document when mileage or parking fees are reimbursed via eTravel or KFS.

II. Definitions

No policy specific or unique definitions apply.

III. Administrative Procedure

A.  General Procedures

    1.     Each office which authorizes employees and non- employees to use privately owned vehicles for official University business must ensure that the DISB-33 is prepared in accordance with the procedures specified herein.

    2.     The IRS assumes the use of an employee's and non-employee's car is for personal use unless otherwise documented/logged as a business trip.  Car usage for business purposes must be accurately accounted for. Mileage reimbursements that do not qualify per the IRS as business related and appear to the IRS as a reimbursement of mileage incurred of a personal nature will be reported in their entirety as income to the recipient.

    3.     The determining factor whether mileage is incurred in the course of business or is of a personal nature will be determined as to who benefits by the mileage/trip.  If the University substantially benefits, it will be considered business.  If the employee/non-employee benefits, then it will be considered personal.

    4.     Mileage reimbursements should not be made for personal trips.  However, with the various types of monies the University handles, a fellowship or traineeship budget may include mileage reimbursement for mileage incurred in the course of study.  The IRS classifies this as a personal trip and requires the reimbursement to be reported in its entirety as income.

B.  Guidelines

    1.  Mileage

        a.  University department/organization heads or program directors may authorize any employee or non-employee to use privately owned vehicles for official University business on a mileage basis when publicly owned vehicles at University departments and at the University Transportation Service are not available or are not practical to use.  Appropriate subcodes are to be utilized to identify employee and non-employee (Attachment 2).

        b.  Mileage reimbursement may be authorized for transportation from place to place as required in the normal course of an employee's or non-employee's performance of assigned duties.  This includes mileage to and from transportation terminals in conjunction with official travel off the island on which the employee or non-employee has his regular place of business.  Whenever applicable, such mileage claims shall be documented on the Personal Automobile Mileage Voucher and processed for payment via eTravel.

        c.  Travel between an employee’s or non-employee’s home and his/her regular place of business is not considered official business, and no mileage or other reimbursement is allowed for such transportation except as set forth below:

            (1)  If it is more practical to drive directly from home to a job site or other place of official business, without first driving to the regular place of business, the employee or non-employee may be reimbursed for mileage which exceeds the number of miles normally traveled between home and his/her regular place of business.  This rule of excess mileage also applies when an employee or non-employee departs on official travel if it is more practical to drive directly from home to the transportation terminal without first driving to the regular place of business.

            (2)  Mileage reimbursement is allowed when travel between home and a business destination or between home and a transportation terminal occurs outside normal working hours and provided such travel is approved by the department/organization heads or program directors.

If the travel occurs on a normal working day at a time that the employee or non-employee usually commutes to or from work, such mileage reimbursement is allowed only for the miles in excess of the usual commuting trip.

If the travel is due to overtime work on a normal work day, reimbursement for mileage may be allowed only for the miles in excess of one roundtrip between home and the regular place of business.

        d.  To qualify for the mileage allowance, each employee/non-employee must carry the minimum liability insurance as required by the Hawai'i Revised Statutes Chapter 431:10c-104.

    2.  Parking Fees

        a.  Parking fees are reimbursable when incurred in connection with authorized use of privately owned vehicles for official University business.  This includes parking fees substantiated with receipts as well as metered parking specific to trips for which mileage is claimed.

        b.  Parking expenses associated with the authorized use of State and University owned vehicles as well as public bus fares incurred while on official business are not to be claimed on the Personal Automobile Mileage Voucher.  They are to be reimbursed through KFS via a Disbursement Voucher.

        c.  Fixed parking fees, such as fees paid on a monthly basis, are reimbursable (based on the collective bargaining schedule) if all of the following conditions are met:

            (1)  The employee is covered by a Bargaining Unit agreement which provides such reimbursements.

            (2)  The employee is required to use a personal vehicle in connection with his/her work (see below for qualifying criteria) and

            (3)  The employee parks at a parking facility under the jurisdiction of the State Department of Accounting and General Services, the City and County Building Department, or a commercial parking facility.

Note: University parking facilities do not fall within any of the above categories, with the exception of subsidies granted UHPA, B.U. 07 and HGEA, B.U. 08.

        d.  The following criteria are to be used to identify employees whose work allowed the reimbursement of fixed parking fees.

            (1)  The duties and responsibilities of the position require the incumbent to possess a valid motor vehicle license and to use his/her personal vehicle on a regular and frequent basis in order to carry out work assignments.  Furthermore, an applicant or employee who does not possess a valid motor vehicle license or a personal vehicle that can be used for business purposes would not be hired nor retained in such positions.

            (2)  Travel by public transportation to work locations is impracticable.

    3.  Reimbursement Rates

        a.  Mileage and fixed parking reimbursement rates are governed by the collective bargaining contract in effect at the time of travel.  Whenever there is a conflict between the rules and regulations set forth in the Administrative Procedures Manual and the provisions of a collective bargaining agreement that is currently in force, the provisions of the collective bargaining agreement shall prevail.

        b.  Excluded employees under Section 89-6, Hawaii Revised Statute, shall receive the same application of such provisions as employees included in the bargaining unit.

        c.  Mileage allowance rates for motorcycles shall be one-half the applicable rate for automobiles.

        d.  Mileage allowance rates for Non-Employees are determined between the payer and payee at a rate not to exceed the Collective Bargaining rate.

    4.  Alternate Method of Payment

        a.  Travel Completion Report for Employees

The DISB-33, Personal Automobile Mileage Voucher, in itself, may be used to process mileage and parking fee reimbursements.  However, all travel-related mileage/ parking fee reimbursements should be processed for payment via eTravel (Refer to A8. 851 – Employee Out-of-State and Intra-State Travel) and properly supported by the DISB-33.

        b.  Purchase Order for Non-employees (Independent Contractor)

For mileage reimbursements, DISB-33 should be submitted (or the information contained on DISB-33 be provided) to ensure IRS rules of substantiation are met as to business purposes, destinations, dates, and amounts.  In the event DISB-33 or the necessary information is not submitted, the amount will be reported.

C.  Tax Implications

    1.  Employee

Mileage paid in excess of the Federal allowable rate must be processed as taxable income with appropriate tax withholding through the State Payroll System.  These taxable amounts will increase the employee's Federal, State, and FICA taxable income and will generate additional withholding assessments against gross payroll wages.

These types of payments are not payroll payments, but serve to increase taxable income and are defined as Wages-in­Kind.  The Employee's Earning Statements will reflect only the taxable amounts in the "Wages-in-Kind" block.

If a portion of the employee's payment is taxable, the non­taxable portion must also be reported as wages-in-kind in the State Payroll System for informational purposes only.  The reportable and non-taxable (coded "L") portion of the payment will only appear at calendar year end on the IRS Form W-2.  The reportable portion will not be presented anywhere on the Employee's Earning Statement.

If an employee for some reason accepts a mileage reimbursement rate that is equal to or lower than the Federal allowable rate, then there is no taxable amount and the total amount should not be reported (see Attachment 2 for applicable subcodes).

Updates to the Federal allowable mileage rate will be distributed by the Disbursing Office as required in a Business Affairs Circular.

    2.  RCUH/State Employee

For mileage payments paid by the University to RCUH/State employees other than UH employees, the UH cannot report the mileage payment through the UH payroll system.  As such, the RCUH/State employee must be coded with a Non-employee, Non-reportable subcode.  A copy of the DISB-33, Personal Automobile Mileage voucher will be forwarded by the Disbursing and Payroll Office to the applicable RCUH/State department/agency for processing through payees' Payroll Section.  Reportable and taxable income with appropriate tax withholding (i.e. On DISB-33 form, check box Non-employee and indicate type, State w/ DOE) will be recorded and processed by their respective Payroll Sections for IRS Form W-2 reporting.

    3.  Non-Employee

Mileage payments to non-employees must be prorated between the amount at or below the federal rate and the amount above the federal rate.  The amount at or below the federal rate is non-reportable as long as payments are substantiated as to the business purposes, destinations, dates, and amounts.  The amount above the federal rate will be reported as income. At calendar year end, an IRS Form 1099-MISC
may be issued by the University of Hawai'i Disbursing and Payroll Office.

    4.  Non-Employee, Fellowship/Traineeship

Mileage incurred by fellows/trainees are considered of a personal nature (for the purpose of furthering their education) and reportable in its entirety as income by the payee on their personal income tax returns

A chart to assist colleges/departments in the preparation of the DISB-33 and its corresponding tax implications has been provided for their use (see Attachment 3).

D.  Procedures for the Preparation of DISB-33

Complete the DISB-33, Personal Automobile Mileage Voucher for authorized personal automobile mileage and parking reimbursements; obtain the required signatures and attach all required supporting documents (original receipts or certification statements)

    1.  Authorization Requirements

The Disbursing Office requires approvals from i) the Program Head, ii) the Fiscal Officer, and iii) the Employee or Non-Employee on all Personal Automobile Mileage Vouchers. For control purposes, an individual should not approve a document if he/she is named as the payee.

    2.  Submission of Forms

The DISB-33 is to be submitted to the Disbursing Office within five (5) working days after the end of each month for all reimbursement claims incurred during that month. Scan the DISB-33, with any supporting documentation and attach to Disbursement Voucher (DV Payment Reason Code T – Travel). A copy of the DISB-33 should be given to the individual for his/her record.

IV. Delegation of Authority

There is no administrative specific delegation of authority.

V. Contact Information

Disbursing Office, 956-8575

VI. References

    A. Link to superseded Executive Policies in old format
    B. Link to Administrative Procedures in old format

VII. Exhibits and Appendices

Attachment 1:  DISB 33 Personal Automobile Mileage Voucher
Attachment 2:  List of Mileage Subcodes
Attachment 3:  Mileage Calculations


    Kalbert Young    
    April 21, 2016    
    Vice President for Budget and Finance/Chief Financial Officer


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