TSS - Relocation and Moving Expenses

Relocation and Moving Expenses

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First Published  :Thu Sep 18 18:07:45 GMT 2014
Last Modified  :Wed Aug 03 19:14:25 GMT 2022
Last Published  :Wed Aug 03 19:14:25 GMT 2022
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    NEW HIRE RELOCATION BENEFIT
    Reimbursement of travel expenses for relocation of newly recruited personnel is commonly limited by departmental budgets and/or the terms of contracts and grants. No commitment for reimbursement should be made without first consulting the appropriate Department Head or Manager to ascertain that such reimbursement is authorized.

    Subject to the department budgetary and contract limitations, newly hired employees may be reimbursed for moving expenses. Generally, the term "moving expenses" means only the reasonable expenses of:
    1. moving household goods and personal effects from the former residence to the new residence
    2. traveling (including meals and lodging) from the former residence to the new place of residence
    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. Both reimbursed and employer paid amounts will be reflected on the employee’s payroll records and payroll taxes will be withheld.

    REIMBURSEMENTS TO EMPLOYEE PAID RELOCATION EXPENSES ARE PAID THROUGH PAYROLL
    When an employee has moving expenses for reimbursement, the employee or their department submits a completed Moving Expense Reimbursement Form to TSS.  The TSS Travel and Payroll teams review the report for accuracy and completeness.  The TSS Payroll team will add the reimbursement to the next available payroll for payment as a taxable wage item on the employee’s paycheck. 

    DIRECT MOVING COMPANY EXPENSE PAID BY 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.


     

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    qualified and non qualified expenses