CAMPUS NOTICE

 

OFFICE OF THE CONTROLLER

May 17, 2018


ALL FACULTY AND STAFF AT UC SAN DIEGO (including Health System)

Subject:    Federal Legislation Affects the Taxability of Employee Moving

Expenses The Tax Cuts and Jobs Act (P.L. 115-97), signed into law at the end of
2017, includes a provision that has an immediate impact on the
University and its employees as it relates to the taxability of the
reimbursement/payment of moving expenses. UCOP has now provided
guidance to campuses on reporting employee move payments and revised
BFB-G-13 Policy and Regulations Governing Moving and Relocation to
reflect the change in tax law (See
https://policy.ucop.edu/doc/3420347/BFB-G-13).

Moving Expenses are taxable. Prior to the new tax legislation,
qualified moving expense reimbursed by an employer were either
deductible on an individual’s tax return, or excludable from the
employee’s income.

The new tax law treats all moving expense reimbursements/payments as
nondeductible taxable. Therefore, effective January 1, 2018, all moving
expense reimbursements or payments whether reimbursed to an employee or
paid directly to a third party are treated as taxable to the employee
(See https://blink.ucsd.edu/travel/move-transfer/expenses/taxable.html).

Please note that although all moving expenses are taxable,
payments/reimbursements are still limited to those expenditures allowed
and reported following UC San Diego move guidelines (See
https://blink.ucsd.edu/travel/move-transfer/expenses/index.html).
Employees receiving a move-related payment/reimbursement, including
payments to third parties on their behalf such as a moving company, will
find the applicable state and/or federal withholding adjustments on
their earnings statements. Departments will also see DOS code entries
for the employer-related taxes.

Please submit any questions on this topic through ASK (See
https://ask.ucsd.edu/).



Cheryl A. Ross Controller / AVC Business & Financial Services / VCHS Financial Officer