The Internal Revenue Code that provided an exclusion from employees’ income for qualified moving expense payments and reimbursements made by employers has been permanently suspended, except for military-related moving expenses. All moving expenses paid or reimbursed will be taxable to the employee and subject to tax withholding. Moving and relocation expenses include house hunting trips and temporary housing expenses.
Departments are responsible for approving and ensuring moving expenses agree with offer letters issued. Any overages are the responsibility of the department to ensure appropriate authorization.
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 Procurement Office and the subsequent invoice(s) being received for such expenses. Such payments paid directly to a vendor or charged on a university credit card 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
Reimbursements to an employee for moving and relocation expenses are to be processed and paid on a RAP (Request for Additional Pay) form through the Payroll system. The reimbursement will be processed and paid with the employee’s next scheduled pay. Expenses incurred prior to an employee’s hire date can be reimbursed in their first pay, at the earliest. Taxes will be withheld accordingly and reported on the employee’s Form W-2.
Please contact Payroll at 315-443-4042 or payroll@syr.edu with any questions.