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.
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 The Tax Cuts and Jobs Act enacted on December 22, 2017 repealed the deduction for moving expenses, making employer-paid moves or moving reimbursements a taxable benefit to the employee.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.
All departments processing self-move reimbursements for employees.