1/28/2024 0 Comments Are moving expenses taxablePayment for travel will be made at the mileage rate of $.18 cents per mile, plus tolls (or at the present IRS moving mileage rate).Side trips for sightseeing or other visits are not reimbursable. This is determined by the employer with the help of IRS guidelines. Travel by car may be reimbursed using one of the following two options.(Receipts must be submitted within one year from date of employment.) All household members do not need to relocate at the same time. The cost of only one trip per person may be reimbursed.The expense of storing and insuring items for a 30-day period after moving out of the former residence and before delivery to the new residence.The cost of professional moving of household goods.The cost of packing, crating, and shipping furniture and other household items and personal effects of the employee and members of the household (dependents).In the case of an employee and spouse relocating from different locations, reimbursement will be provided from one location only. The reasonable cost of moving household goods and personal effects from the former residence to the new residence.The following items will generally be eligible for reimbursement Those eligible are newly employed full-time faculty and administrators. Eligible expenses above $1000.00 reimbursed at 50%, with a maximum dollar reimbursement totaling $2000.00.Įligible moving expenses will be paid one time, and the relocation of residence must be from outside a 50 mile radius of Gettysburg to within that radius of Gettysburg.First $1000.00 of eligible expenses reimbursed 100%.Please note that due to recent changes in the tax code, effective for moving expenses paid on or after January 1, 2018, all moving expense reimbursements or payments on behalf of employees are taxable and included as compensation. Once processed, the individual will receive the payment via check mailed to their home address.Maximum payment by the College is $2000.00 of approved expenses as listed below, unless listed otherwise in the employee’s contract letter. Once approved, Human Resources will forward the form to Payroll for processing.Department Business Administrator submits a completed supplemental pay form, with appropriate receipts attached, to Human Resources for review.Department specifies in the faculty or professional staff member’s offer letter that relocation expenses will be disbursed through a relocation allowance up to a specific dollar amount.Department receives approval from the Provost office/HR that they may offer relocation expense reimbursement.Relocation Expense Allowance Reimbursement Process Once processed, a check will be mailed to their home address. If the individual has not started working yet, they must complete a new hire packet.Once processed, the individual will receive the payment via check mailed to their home address Department Business Administrator submits a completed supplemental pay form, with copy of the offer letter, to Human Resources for review.Department specifies in the faculty or professional staff member’s offer letter that relocation expenses will covered through a one-lump sum payment.Department receives approval from the Provost office/HR that they may offer a one-lump sum relocation expense payment.One-Lump Sum Relocation Expense Payment Process Payment for relocation services should not be processed through Procurement Services, Accounts Payable, SmartSource, or P-card. Please be aware that Drexel will no longer engage vendors on behalf of the employee for relocation services. Some suggested relocation resources are provided on the Drexel HR website. A supplemental pay form must be submitted for both the one-lump sum and the reimbursement of expenses. The relocation expenses must be addressed in the faculty or professional staff member’s offer letter, stating the method of coverage. Both allowances are taxable and will be issued through Payroll. Relocation expenses may be covered through a one-lump sum or through reimbursement up to a specific dollar amount. In such a situation, approval must be requested to the Provost Office for faculty members and Human Resources for professional staff members before relocation expense coverage can be offered.Įffective January 1, 2018, under the Tax Cuts and Jobs Act, all employer-paid relocation expenses must be reported as taxable income. In rare instances, it is appropriate for relocation expenses to be covered for a faculty or professional staff member who is relocating to work at Drexel. Relocation Expenses Now Taxable Income August 2018 Electronic Faculty Annual Reviews (FARs).
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