MFM Commuting Rates

In accordance with G.S.143-341(8)i.7a, any individual who uses a state-owned passenger motor vehicle, pickup truck, or van to drive between the individual’s official workstation and his or her home must have DOA approval. This is applicable to vehicles assigned through Motor Fleet Management (MFM) and vehicles owned by an agency.

Unless exempted by statute, individuals must reimburse the state via payroll deduction. Each agency is responsible for setting up and terminating payroll deductions through their respective fiscal office and OSC Best Shared Services. 

For Motor Fleet owned vehicles, DOA approval to commute is granted when the completed FM-30 “Individual Assignment” vehicle application is submitted to and signed by Motor Fleet Management.  For DOA commuting approval in an “agency owned” vehicle, use the Commuting Request form.

For reimbursement, agency fiscal divisions should use the following BEACON payroll wage types based on vehicle ownership:

Vehicle Owner Wage Type Fund Distribution
MFM-owned 2106 Funds are distributed to DOA MFM
DOT-owned 2105 Funds are distributed to Highway Fund
Agency-owned 2111 Funds are distributed to DOA General Fund

2024 Commuting Reimbursement Rate

MFM computes commuter reimbursement rates following IRS Publication 15-B rules for commuter benefits and has adopted the IRS “Commuting Rule”, “Cents-Per-Mile Rule" and “Lease Value Rule”. The Commuting Rule is the standard rule applicable to all employees, except control employees or Council of State members.  A control employee is either a government employee whose compensation is equal to or exceeds Federal Government Executive Level V or an elected official. A Council of State member may use either the Cents-Per-Mile Rule or Lease Value Rule. All other control employee shall use the Cents-Per-Mile Rule. See the Office of Personnel Management website for 2024 compensation information

Commuting Rule

For all employees except control employees or Council of State members.

The reimbursement amount is computed by multiplying each one-way commute (that is, from home to work or from work to home) by $1.50.  If more than one employee commutes in the vehicle, this value applies to each employee. 

Example: Individual daily commute
From home to work        $1.50
From work to home        $1.50
Daily reimbursement     $3.00 per day X 20 statutory days = $60.00
Monthly payroll deduction = $60.00

Cents-Per-Mile Rule

Council of State members may use either the Cents-Per-Mile Rule or Lease Value Rule. Other control employees shall use the Cents-Per-Mile Rule.

Under this rule, the value of a vehicle for commuter use is determined by multiplying the standard mileage rate by the total miles the individual drives the vehicle for commuting purposes. For 2023, the IRS standard mileage rate for an individual’s commuter use of a state-owned vehicle is 67 cents per mile.

Example: Individual daily commute
From home to work        14 miles
From work to home        14 miles
Reimbursement               28 miles X .67 = $18.76 per day X 20 statutory days = $375.20
Monthly payroll deduction = $375.20

Lease Value Rule

For Council of State members

Council of State members may reimburse the state for the actual number of days the member uses the vehicle to commute during the month.  With this method, employers (the member's agency) use the annual lease value of the automobile (including trucks and vans) — as specified by the table in IRS Publication 15-B that bases annual lease value on an automobile’s Fair Market Value (FMV) — multiplied by the percentage of commuter miles out of total miles driven by the employee. The annual lease value does not include the value of fuel provided to an employee for commuter use; the value of the fuel must be added separately. The fiscal division of the member's employing agency is to use the formula outlined in IRS Publication 15-B to make the calculations and the correct payroll deduction for reimbursement.

This page was last modified on 06/17/2024