[Minor revision–posted 3/6/24 (replaces 11/11/19 edition)]
[PDF Version]
Operating Policy and Procedure
OP 72.10: Payments for Employee Moving Expenses
DATE: March 6, 2024
PURPOSE: The purpose of this Operating Policy/Procedure (OP) is to establish procedures for paying employee moving expenses.
REVIEW: This OP will be reviewed in November of odd-numbered years by the Assistant Vice President and Chief Payroll Officer with substantive revisions forwarded through administrative channels to the Senior Vice President for Administration & Finance and Chief Financial Officer.
AUTHORITY AND APPLICABILITY
This OP follows the tax rules set forth by the Internal Revenue Service (IRS). See IRS Publication 521 for more information. In the event that the IRS rules change or there is a discrepancy between this OP and the IRS, the rules set forth by the IRS will prevail.
POLICY/PROCEDURE
1. Business Expenses
Expenses incurred to bring prospective employees to the university (e.g., recruiting, interviews, etc.) are business expenses that should be paid directly to the vendor and are not employee moving expenses covered by this OP.
2. Employee Moving Expenses
a. All relocation payments made on or after January 1, 2018, will be taxable. The Tax Cuts and Jobs Act removes the individual moving expense deduction effective January 1, 2018. This change prohibits an employer's ability to pay and/or reimburse an employee's moving expense as a nontaxable payment. As such, all relocation payments made on or after January 1, 2018, will be taxable and must be submitted on the MOV earn code.
b. Payments of moving expenses to the employee should be processed through Human Resources by processing through the Employee One-Time Payment System (EOPS), located at https://banapps.texastech.edu/itis/PY_employee_OTP/Welcome.aspx. The MOV pay code should be used for all moving expenses.
(1) Actual Reimbursement: If reimbursing actual (incurred) moving expenses, please submit copies of the receipts with the MOV EOPS. Receipts need not be original; physical and/or digital copies are sufficient. Scanned copies of all applicable receipts attached to the EOPS as a PDF document is the preferred method. The following information should be included with the receipts:
(a) The date the employee accepted the job;
(b) The date the employee started work;
(c) The date(s) the moving expenses were incurred;
(d) The date(s) the employee was traveling and moving;
(e) The employee's former city of residence; and
(f) The family members who traveled with the employee.
(2) Relocation Stipend: For relocation stipends, receipts are not required if an offer letter indicating the amount of the relocation stipend offered is attached to the EOPS transaction. Departments do not have to wait until the move has occurred to submit the EOPS payment.
c. Payments of expenses to a contracted third-party vendor should be made through TechBuy. If agreed upon by the department and the employee, departments may contract with a third-party vendor to complete the moving/relocation services. In this case, the moving expenses should be paid directly to the moving company through TechBuy. Any moving expenses that are paid through TechBuy to a third party on behalf of an employee are considered a taxable benefit. Amounts paid to a third party on behalf of an employee that are for moving expenses will be added to the employee's W-2 wages with taxes withheld. The hiring department is responsible for informing the employee that taxes will be withheld on this type of payment.
3. Approvals
Reimbursement for moving expenses requires the approval of the appropriate vice presidents or the Provost and Senior Vice President.
OP Categories
01 Chancellor
02 Development
04 Audit Services
10 President
30 Academic and Student Affairs – General
32 Academic Policies – Faculty
34 Academic Policies – Students
36 Academic Programs
40 Equal Opportunity and Affirmative Action
48 Communication Services
52 Information Technology
60 Environmental Health and Safety
61 Facilities Management
62 Financial and Accounting
63 General Services
64 Graduate Programs (Faculty and Students)
65 Research Accounting
66 Libraries
67 Mail Services
68 Communications and Marketing
69 Payroll and Tax Services
70 Human Resources
72 Purchasing, Contracting, and Payables
74 Research
76 Security
77 Student Services and Registrar
78 Traffic and Parking
79 Travel
80 Vehicles
Operating Policies & Procedures
-
Address
Texas Tech Downtown Center Room 218 -
Email
officialpublications@ttu.edu