Date:	April 20, 1999	Code: AD 99-06
To:	Vice Presidents for Administration
From:	William P. Musselman Acting Accounting Director Business and Finance
Subject:	Payroll Letter 98-038 Clarification
	Payroll Letter 98-038, issued on December 1, 1998 by the State Controller's Office addressed the taxability and reporting of certain meal reimbursements for travel less than 24 hours. To separate this issue with other closely related topics, it is important to clarify the scope of the Payroll Letter. The Payroll Letter applies only to meal reimbursements given to employees who are on travel status during a period of less than 24 hours, and which does not require overnight lodging or a substantial rest period. Short-term travel of this nature is found in State Administrative Manual (SAM) Section 0721. The SAM section defines short-term travel expenses as those that are incurred at least 25 miles from an employee's headquarters. Further, short-term travel reimbursable expenses do not include lunch or incidental expenses. The Payroll Letter does not address the possible taxability of other allowable work related reimbursements. Questions may be directed to Mr. Mark Osborne at (562) 951-4610 or via e-mail at mosborne@calstate.edu, or to Ms. Lisa Chavez at (562) 951-4610 or via e-mail at lchavez@calstate.edu.   WPM:tp AD 99-06 Attachment A-The CSU Payroll Letter 98-038 Clarification Distribution: Presidents Financial Managers Accounting Officers Budget Officers Chancellor's Office