Employee Moving & Relocation Expenses

Employee Moving & Relocation Expenses

•Employee moving and relocation expenses fall into two categories. ▫Qualified Expenses▫Non-Qualified Expenses

•Both types of expenses are reported on an individual’s W-2 form.

•Taxability of Relocation for Faculty and Staff

Non-Qualified Moving & Relocation Expenses

• Non-Qualified Expenses must be paid as an Additional Pay Allowance (ALA) and are taxed as income. Common examples of Non-Qualified Expenses are:▫Pre-move house hunting▫Meals – including meals while in-transit▫Temporary housing▫Storage charges beyond 30 days▫Real estate fees (i.e. expenses associated with

buying/selling a home)▫Personal needs (i.e. car tags, return trips

home, etc.)

Qualified Moving and Relocation Expenses

• Qualified Expenses should be reimbursed through Concur and are not taxed as income. Common examples of Qualified Expenses are:▫ Moving household goods and personal effects▫ Travel to new residence▫ Lodging while in route▫ Connecting & disconnecting household equipment▫ Packing▫ Insurance & in-transit storage

• To be considered Qualified Expenses these conditions also must be met:▫ The individual must be a full-time employee (Post-Docs are not

considered employees so any relocation payments are taxable)▫ The job must be new for the individual – generally expenses must be

incurred within one year from the date an individual starts a position▫ The move must be at least 50 miles farther from the individual’s former

home than their previous job▫ The position must last at least 9 months for a new employee or 12

months for an existing employee

Processing Qualified Moving & Relocation Expenses through Concur•All Qualified moving expenses should be

reimbursed through Concur using the “Employee Moving/Relocation” expense type

•This charges the associated expenses to object code 5327 and routes the expense through Joe Gibbs in the tax office

•The comments fields can be used to provide further details of the expenses (i.e. airfare, lodging, etc.)