01: Summary, This policy promotes the proper stewardship of University funds by providing general guidelines for the appropriate and legal uses of University funds in support of the University's missions. This policy contemplates also that certain institutional duties and responsibilities have been delegated to the operating units (department/division) of the University involved in the conduct of business and…, 02: Scope and Purpose, The Internal Revenue Code that provided an exclusion from employees’ income for qualified moving expense payments and reimbursements made by employers has been suspended, except for military-related moving expenses, for tax years 2018 through 2025. All such payments made to an employee, or on an employee’s behalf, are now taxable income to the employee and are required to be reported on the…, 03: HR Payroll , The transition allowance will be paid through the payroll system as taxable compensation, following normal payroll procedures, using payroll earnings code MNQ – Transition Relocate Allowance. This earnings code “pays” and adds to taxable gross income., 04: Communication, The hiring department is responsible for communicating information regarding payment and taxability of the allowance to the employee. Tax treatment of an employee’s moving expenses, which will now be paid as a transition allowance, are governed by the Internal Revenue Service. All such payments made to an employee will be reported on the employee’s Form W-2. Federal and state income taxes,…, Sample Statement:, A comprehensive transition allowance in the amount of $____________ will be paid in lieu of moving, relocation and employment transition cost reimbursements and/or direct payments to commercial moving companies. The amount of the allowance will be paid to you during your first month of employment. The allowance will be processed as taxable compensation through the Payroll system with all…, Note:, Calendar Year (CY) 2018 is a Transition Year. This means expenses incurred in the previous Calendar Year (2017) will be taxed as stated above if payments are made in CY 2018.
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