Moving, Taxes and AURA
- I have just been employed by AURA and the company moved me. Are there any income tax ramifications of that move that I need to be aware of?
I have just been employed by AURA and the company moved me. Are there any income tax ramifications of that move that I need to be aware of?
The Internal Revenue Service allows employers to pay certain moving expense items for new employees tax-free.
These non-taxable items include:
- 36.5¢ per mile paid for during relocation if you drive your car to your new job site
- Other travel and first 7 days of lodging payments (excluding meals)
- Transportation and storage (first 30 days only) of household goods and personal effects
- Airfare and Baggage Fees
The IRS requires employers to withhold payroll taxes if any of the following moving expense items are paid to you or to someone else on your behalf:
- Storage of household goods for more than 30 days after relocation paid on your behalf
- Temporary quarters after relocation paid for on your behalf (e.g., Residence Inn)
- Rental car expense after relocation paid for on your behalf
- House-hunting trip
- Mileage reimbursements above 17¢ per mile
- Meals paid for during relocation
AURA complies with IRS regulations. If any of these items are paid to you or for you, Payroll will eventually withhold federal income tax, state income tax, and social security taxes on the value of these items. If you have any questions concerning the tax liabilities with a move, contact Renae Chapman, Controller.