Federal tax legislation removed exemptions applicable to moving expense direct pays and reimbursements effective 1/1/2018.
All payments for moving expenses to, or on behalf of an employee must be reported as wages and taxes must be withheld.
Direct Payments to Vendors
Direct payments to vendors (such as moving companies or hotels) will be made based on the invoice(s) being received for such expenses. Such payments paid directly to a vendor will be included as non-cash taxable income in the employee’s pay. Taxes will be withheld accordingly and reported on the employee’s Form W-2.
If DKIST is providing you space in one of their rental homes in Maui for the first 30 days; this will be reported to Accounting and the total value of the stay will be included as non-cash taxable income in the employee’s pay.
Reimbursements to Employees
Authorized reimbursements are paid to an employee for moving expenses paid from the employee’s personal funds. A request for reimbursement should be submitted on a Travel Expense Report tied to the Travel requisition that authorized the relocation expense. Upon receipt of a properly documented and substantiated (receipts) request for reimbursement of moving expenses the reimbursement will be processed and paid with the employee’s next regular pay. Taxes will be withheld accordingly and reported on the employee’s Form W-2.
The tax consequences of this additional taxable income will depend on the employee’s tax bracket.
Payroll will work with the employee to alleviate the burden of these taxes when needed.
AURA uses a Web-based timesheet (WTS) reporting system to keep track of hours worked and leave taken. You may want to bookmark this site since you will need to use it every bi-weekly pay period.
If you have questions or problems, please contact Payroll. For Web Timesheets instructions, view the Web Timesheets Tutorial.