Internal Revenue Service has several rules for reporting moving expense reimbursements. These rules explain the way in which the University must report reimbursements for moving expenses.
The Revenue Reconciliation Act provided that qualified (deductible) moving expenses paid by an employer are excludable from an employee’s gross income and are reported as an excludable fringe benefit on the W-2 form (Box 14 on UCLA’s form). Deductible expenses include the reasonable costs of moving household goods and personal effects and for traveling from the old residence to the new residence. The move must meet the 50 mile distance requirement. This information is received by Payroll Services on an annual basis from Travel Services.
Reimbursement of moving expenses that are not deductible must be included in the employee’s gross income as wages subject to withholding of income and employment taxes. This includes payments for meals, pre-move house hunting trips, temporary living expenses, and real estate expenses. These payments should be processed on the EDFT screen as a one-time payment using the DOS code of MOV.
The following is an example of a moving expense processed on the EDFT screen:
PPETFT0-E0967 Dept. Time Reporting 06/06/YY 15:50:52
06/01/YY 22:22:06 One Time Payment (EDFT) Userid: ABCDE
ID: 555677444 Name: PAYMENT,MOVING Emp Status: A
Pay End: 06/30/YY Check Date: 07/01/YY Pay Cycle: MO Page 1 of 1
E T D W
R Y U PerEnd S
C Seq LACFPS C P C Ttl DOS Amount MMDDYY P
4 660500 19900 0 E 5 1111 MOV 00355.00 0630YY
Next Func: ID: 555666444 Name: SSN:
Seq No: Pay Cycle: MO Pay End: 0630YY
===>
F: 1-Help 2-Jump 5-CANCEL
F: 9-UPDATE
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