Moving, Recruiting, and Related Expenses

Effective 1/1/2018, as part of the Tax Cuts and Jobs Act, all permanent staff and faculty moving expenses are considered taxable.

• A commitment to pay for such expenses should not be made without first consulting the Dean, Vice President or Department Head for approval

• Recruitment, moving and related expenses for employees and non-employees are authorized at the School or Unit department level

A chart describing tax implications for moving, recruiting, visa and related expenses as well as temporary relocations can be found here.
Tax Implications Moving, Recruiting, Visas and Related Expenses (word)
Temporary Assignment Attestation Form - Use for Harvard employees on temporary assignment (also called temporary relocation)
Main Place of Practice Attestation Form - Use in certain circumstances. Contact taxcompliance@harvard.edu with questions.

Rental Accommodations and Third Party Payments
Historically, Harvard business travelers seeking reimbursement for rental accommodations (VRBO, apartments, etc.) were required to get a Form W-9 from the renting landlord. In consultation with OGC, the Financial Policy Office determined that collection of the W-9 from the renting landlord (and subsequent processing as a 3^rd party payment) is no longer necessary.

Please feel free to reach out to financialpolicy@harvard.edu if you have any questions.

Topics covered here:

• Recruitment Expenses

• Employee Moving and Related Expenses (Outside and Inside the US)

• Non-Employee Moving and Related Expenses

• Additional Information and Questions

• Related IRS Publications and Forms

• Standard Mileage Rates from the IRS

Recruitment Expenses
Before an offer is accepted:

Payment of authorized recruitment expenses such as airfare, hotel, and meals incurred during the recruitment process is not taxable to the prospective employee. A detailed accounting of all recruiting expenses is required.

After an offer is accepted:

After an offer of employment has been accepted however, the employer/employee relationship is established and pre-move house hunting expenses incurred by the employee and family are considered taxable/reportable income.

Reimbursement of Recruiting Expenses
For job candidates and their families prior to acceptance of a job offer, use B2P Non-Employee Reimbursement Form

Employee Reimbursements or Third Party Payments

• After an individual has started employment
  All payment requests must include acceptance date

  • Use PeopleSoft Additional Pay Form

Standard Mileage Rates from the IRS
https://www.irs.gov/tax-professionals/standard-mileage-rates

Employee Moving and Related Expenses
Effective 1/1/2018, as part of the Tax Cuts and Jobs Act, all permanent staff and faculty moving expenses are considered taxable.

Additional Information and Questions
Contact Tax Services for information and questions regarding moving and related expenses.