||Date Last Updated:
||Reporting Moving Expense Reimbursements
The purpose of this bulletin is to update state agencies on reporting residential moving expense reimbursements paid to employees.
Most moving expense reimbursements paid to employees under NYS' plan are defined by the IRS as excludable fringe benefits. As such, they are not subject to withholding or reportable as income. However, the IRS requires reporting of excludable reimbursements on the employee's W-2 in Box 13, along with a Code "P" identifying them as nontaxable reimbursements. The information needed to report these reimbursements is captured from payment vouchers and transferred to the PaySR system. The total amount of the excludable reimbursed expenses is reported in Box 13. Any reimbursements not allowable under the IRS regulations are taxable and included in gross wages.
||Budget Items G-200 and G-205 stipulate that moving expenses may be reimbursed when the distance from the employee's old workplace to the new workplace, or the employee's old residence to the new workplace, is at least 35 miles. The federal criteria for determining taxability of reimbursements are different. They state that if the distance from an employee's old residence to the new workplace is at least 50 miles more than the distance from the old residence to the old workplace, the reimbursement is not taxable. However, if this increase in commuting distance is less than 50 miles, the moving expense reimbursement is taxable, requires withholding of income and employment taxes, and must be reported as wages on the employee's
In order to identify taxable reimbursements, agencies must complete a new distance calculation using form AC1099 (sample attached), Request/Agreements for Moving Expense Reimbursement (Rev 9/95). If the amount on line 7.e of the AC1099 is less than 50 miles, the reimbursement is taxable.
||Vouchers reimbursing moving expenses will continue to be batched separately. Use batch type "VMA".
Agencies should continue to prepare moving expense vouchers as follows:
- The Quick Pay Voucher process must NOT be used for these reimbursements.
- Only one payee per voucher.
- Use IRS Code "W".
- Charge objects 53920-53929, Employee Moving Expense.
- Attach to the voucher the truck rental agreement or itemized bill of lading from the mover.
- Attach a completed AC1099 to the voucher.
Direct questions on this bulletin to the Accounting Information Center at firstname.lastname@example.org or (518) 473-1170.