The Tax Cuts and Jobs Act enacted on December 22, 2017 repealed the deduction for moving expenses, making employer-paid moves or moving reimbursements a taxable benefit to the employee. As a result, ALL employer-paid moving-related expenses or reimbursements to employees for moving expenses are deemed TAXABLE beginning in 2018. The resulting payroll taxes will be deducted from the employee’s paycheck.
UF Reimbursement Procedures (Self-Move)
Self-moves are reimbursements when the employee pays for moving expenses out of pocket and the University of Florida reimburses the employee for those expenses. Once approved and processed, the reimbursement appears on the employee’s regular biweekly paycheck and is direct deposited. Since this is a reimbursement process, itemized receipts/invoices are required in order to adequately account for the expenses. The employee should ask for and save all itemized receipts/invoices as the moving expenses occur.
When requesting reimbursement for meals, the employee must provide itemized receipts listing the food and beverages purchased. The University has a no-alcohol policy, so all receipts are reviewed to ensure that alcohol is not being reimbursed. Receipts that include alcohol are reduced for the alcohol and any corresponding taxes.
An employee adequately accounts for moving expenses by giving the employer documentary evidence of those expenses, along with a statement of expense, an account book, a diary, or a similar record in which the employee entered each expense at or near the time it was incurred. Documentary evidence includes receipts, canceled checks, and bills. Please do not discard itemized receipts, as items purchased must be reviewed. Credit card and bank statements may be used as proof of payment, but a receipt/invoice is still required for expense reimbursement.
The standard mileage rate used for moving reimbursements is as follows:
- $0.180 Effective 01/01/2018-12/31/2018
- $0.170 Effective 01/01/2017-12/31/2017
Please see the IRS website for more information on mileage rates.
The IRS requires the University of Florida to withhold income tax, social security, and Medicare from employee reimbursements and allowances that are considered income to the employee. This income is included in the amount reported in Box 1 of the employee’s IRS Form W-2.
Employees should provide all self-move expense documents to their department for approval. In turn, the department will contact Finance and Accounting, University Payroll & Tax Services, to process the employee’s reimbursement.
Additional information is available on the Procurement website https://procurement.ufl.edu/uf-departments/household-moving-made-simple/ for household moving expenses not processed as a self-move reimbursement.