Receiving Reimbursement for Moving Expenses

Directive Statement

This directive establishes the proper methods of receiving reimbursement for moving expenses.  Self-moves are reimbursements when the employee pays for moving expenses out of pocket and the University of Florida reimburses the employee for those expenses.  Once approved and processed, the reimbursement appears on the employee’s regular biweekly paycheck and is direct deposited.

Reason for Directive

The purpose of this directive is to comply with the Tax Cuts and Jobs Act enacted on December 22, 2017 and IRS regulations.  The Tax Cuts and Jobs Act enacted on December 22, 2017 repealed the deduction for moving expenses, making employer-paid moves or moving reimbursements a taxable benefit to the employee.

As a result, ALL employer-paid moving-related expenses or reimbursements to employees for moving expenses are deemed TAXABLE beginning in 2018.  The resulting payroll taxes will be deducted from the employee’s paycheck to comply with IRS regulations.  The IRS requires the University of Florida to withhold income tax, social security, and Medicare from employee reimbursements and allowances that are considered income to the employee.  This income is included in the amount reported in Box 1 of the employee’s IRS Form W-2.

Who must comply?

All departments processing self-move reimbursements for employees.

Procedures

Flat Allowance Payment (Preferred)

If the department has decided to pay the employee an agreed upon flat relocation amount in lieu of direct receipt reimbursement, please follow these procedures.

1. Once the employee is active in Job Data, the department will create an Additional Pay ePAF for the amount of the reimbursement
   • The appropriate earnings code is BNS (Bonus) with a reason code of “Recruitment”.
   • A copy of the employee’s signed letter of offer that mentions the flat amount of the relocation allowance will need to be uploaded as back up documentation for the payment.
2. Once the Additional Pay ePAF has been approved at all levels, the reimbursement will pull into the employee’s next available biweekly paycheck
3. The reimbursement will be charged to the employee’s regular payroll distribution unless the department updates the employee’s department budget table to reflect a preferred chartfield for the BNS earnings code

Amount of Expenses Incurred Reimbursement

If the department has decided to reimburse the employee for only the expenses that they incurred, the following procedure should be followed.

1. As expenses are incurred, the employee should ask for and save all itemized receipts/invoices related to the move
   • Since this is a reimbursement process, itemized receipts/invoices are required in order to adequately account for the expenses
   • When requesting reimbursement for meals, the employee must provide itemized receipts listing the food and beverages purchased
     • The University has a no-alcohol requirement, so all receipts are reviewed to ensure that alcohol is not being reimbursed
     • Receipts that include alcohol are reduced for the alcohol and any corresponding taxes
2. The employee will provide the following to the department:
   • A statement of expense, an account book, a diary, or a similar record in which the employee entered each expense at or near the time it was incurred for approval
   • Documentary evidence includes itemized receipts, canceled checks, and bills
     NOTE: The employee should not discard itemized receipts, as all documentary evidence must be reviewed.  Credit card and bank statements may be used as proof of payment, but a receipt/invoice is still required for expense reimbursement
3. The standard IRS mileage rate used for moving reimbursements is as follows:
   • $0.20 Effective 01/01/2021-12/31/2021
   • $0.18 Effective 01/01/2022-6/30/2022
   • $0.22 Effective 07/01/2022-12/31/2022
   • $0.22 Effective 01/01/2023-12/31/2023
4. Upon receipt of all documentation, the department will review all original receipts to ensure proper documentation and calculate the amount of the reimbursement.
5. The department will create an Additional Pay ePAF for the amount of the reimbursement
   • The appropriate earnings code is BNS (Bonus) with a reason code of “recruitment”.
   • All the submitted itemized receipts, a copy of the employee’s signed letter of offer that mentions the moving allowance, and a log of the expenses showing the total reimbursement will need to be uploaded as back up documentation for the payment.
6. Once the Additional Pay ePAF has been approved at all levels, the reimbursement will pull into the employee’s next available biweekly paycheck
7. The reimbursement will be charged to the employee’s regular payroll distribution unless the department updates the employee’s department budget table to reflect a preferred chartfield for the BNS earnings code

Last Reviewed

Last reviewed on 06/28/2024

Resources

Procurement – UF Moving Guide

Procurement – UF Household Moving Made Simple

IRS Standard Mileage Rates

Contacts

Payroll Services: (352) 392-1231

payroll-services@ufl.edu

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