Effective 1/1/2018, as part of the Tax Cuts and Jobs Act, all permanent staff and faculty moving expenses are considered taxable.
Withholding and Reporting
Earnings code MOV/MVI - Moving Qualified (ee, 3rd party), has been disabled. Reimbursements to new employees (individuals or 3rd parties such as moving companies, etc.) must use earnings code MVN/MV3 – Moving Non-Qualified (ee, 3rd party). Schools and units may gross-up these payments at their discretion.
- Moving expenses paid directly to an employee must include an additional compensation form when processing through Concur. See How do I process additional pay in Concur?
- Moving expenses paid directly to a third party must include a third party additional pay form (flagged as no check to be issued) in order for Central Payroll to adjust the employee's W-2, Federal, FICA and State gross income since these types of payments are taxable income.