The Internal Revenue Code that provided an exclusion from employees’ income for qualified moving expense payments and reimbursements made by employers has been suspended, except for military-related moving expenses, for tax years 2018 through 2025.
All moving expenses paid or reimbursed beginning January 1, 2018 will be taxable to the employee and subject to tax withholding.
Direct Payments to Vendors
Direct payments to vendors (such as moving companies) will be made based upon the duly authorized departmental submission of a requisition to the Purchasing Office and the subsequent invoice(s) being received for such expenses. Such payments paid directly to a vendor will be included as non-cash taxable income in the employee’s pay. Taxes will be withheld accordingly and reported on the employee’s Form W-2.
Reimbursements to Employees
Authorized reimbursements are paid to an employee for moving expenses paid from the employee’s personal funds. A request for reimbursement should be submitted on an Employee Expense Voucher or Travel Voucher to the Comptroller’s Office. Upon receipt of a properly documented and substantiated (receipts) request for reimbursement of moving expenses the reimbursement will be processed and paid with the employee’s next regular pay. Taxes will be withheld accordingly and reported on the employee’s Form W-2.
If you have questions regarding moving expenses, please Contact Payroll.