Relocation and Moving Expenses
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First Published :Thu Sep 18 18:07:45 GMT 2014
Last Modified :Tue Jan 10 19:22:30 GMT 2023
Last Published :Tue Jan 10 19:22:30 GMT 2023
NEW HIRE RELOCATION BENEFIT
Reimbursement of moving expenses for relocation of newly recruited personnel is commonly limited by departmental budgets and/or the terms of contracts and grants. No commitment to a reimbursement should be made without first consulting the appropriate Department Head or Faculty Affairs Officer to ascertain that such reimbursement is authorized.
Subject to the department budgetary and contract limitations, newly hired employees may be paid a Taxable Moving Expenses payroll supplement to cover moving expenses. Generally, the term "moving expenses" means only the reasonable expenses of:
With the passage of the 2018 Tax Cuts and Jobs Act, for tax years 2018 through 2025 reimbursed and employer paid moving expenses are subject to federal and state income tax.
- moving household goods and personal effects from the former residence to the new residence
- traveling (including meals and lodging) from the former residence to the new place of residence
EMPLOYEE RELOCATION ExpenseS paid VIA payroll Supplement
When an employee has moving expenses for reimbursement, the department will send a Concierge Request to TSS to pay a Taxable Moving Expenses supplement. TSS does not need any back up or receipts related to the move as it is a taxable payment. The TSS Payroll team will add the Taxable Moving Expenses supplement to the next available payroll for payment.
For guidance on how to process a Concierge Request, please see HR Transaction article.
DIRECT MOVING COMPANY expense paid through Accounts Payable
Departments have the option to contact the Procurement team for assistance in establishing a purchase order with a van line company. In this case, the company will directly invoice Tufts, and the vendor payment is made by TSS Accounts Payable. Depending on the amount of the payment made to the vendor and the earnings of the employee, TSS Payroll will spread out the imputed taxable relocation benefit over 2 or 3 pay periods so that payroll taxes are withheld. Taxes on Tufts paid Moving Expenses will show on the employee paycheck as "tx not pd" under the Earnings.
Additionally, the Tufts HR Perks and Discount Program offers access to Coldwell-Banker’s Real Estate Advantage Program. For details see Real Estate Advantage on AccessTufts.
qualified and non qualified expenses