Receiving Reimbursement for Moving Expenses
This directive establishes the proper methods of receiving reimbursement for moving expenses. 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.
Reason for Directive
The purpose of this directive is to comply with the Tax Cuts and Jobs Act enacted on December 22, 2017 and IRS regulations. The Tax Cuts and Jobs Act enacted on December 22, 2017 repealed the deduction for moving expenses, making employer-paid moves or moving reimbursements a taxable benefit to the employee.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 to comply with IRS regulations. 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.
Who must comply?
All departments processing self-move reimbursements for employees.
- As expenses are incurred, the employee should ask for and save all itemized receipts/invoices related to the move
- Since this is a reimbursement process, itemized receipts/invoices are required in order to adequately account for the expenses
- When requesting reimbursement for meals, the employee must provide itemized receipts listing the food and beverages purchased
- The University has a no-alcohol requirement, 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
- The employee will provide the following to the department:
- 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 for approval
- Documentary evidence includes itemized receipts, canceled checks, and bills
NOTE: The employee should not discard itemized receipts, as all documentary evidence 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 IRS mileage rate used for moving reimbursements is as follows:
$0.200 Effective 01/01/2019-12/31/2019
$0.180 Effective 01/01/2018-12/31/2018
- Upon receipt of all documentation, the department will prepare the Request for Approval to Pay Moving Expense Form and attach all original receipts
- The department will submit the form and documentation to Payroll Services for review and approval
- Payroll Services will review the expenses and confirm there is adequate documentation and approval to support the reimbursement. They will then enter the reimbursement on the employee’s next available biweekly paycheck
- The reimbursement will be charged to the employee’s regular payroll distribution unless the department updates the employee’s department budget table to reflect a preferred chartfield for the moving reimbursement earnings code
6/10/2019: reviewed content
Payroll Services: (352) 392-1231