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Domestic Foreign Relocation Advances Travel Agent

Relocation

Contact Mary Withington or Barb McKay for information and/or assistance with arrangements for the preparations to move and/or the actual move.

Approved expenses incurred by new employees while relocating to St. Louis that are reimbursable under the terms of the hiring agreement must be submitted for reimbursement on a Moving Expense form. (*PDF 7k)

The Internal Revenue Code gives a tax advantage to individuals who incur certain expenses for a move related to employment. The Code also permits the mover to receive a tax-free reimbursement of those expenses. Per tax legislation effective January 1, 1994, the allowed (tax advantaged) deductible expenses have been substantially reduced to include only the 'direct' expenses of the move. Other expenses that Congress considers 'indirectly' related to the move that may have been deductible in prior years are no longer deductible. The Code requires withholding of payroll taxes on reimbursements for non-deductible expenses. Submit original receipts for all moving expenses, both taxable and non-taxable, to Mary Withington at Campus Box 1133. A detailed record listing receipts, purpose, and travel dates along with any other pertinent details is also very helpful.

Type of Expense	Tax Treatment Post-1/1/94
Moving company	Allowed
Rental truck	Allowed
Transportation of lab/off equip	Allowed
Mileage during move	Allowed at relocation rate
Lodging during move	Allowed-1 night at relocation city
Meals during move	Not allowed
Househunting trips	Not allowed
Temporary storage	Not allowed
Temporary living	Not allowed
Qualified home purchase	Not allowed
Qualified lease costs	Not allowed

Distance test 50 miles

Please note: In order to achieve payroll tax withholding, approved reimbursements for all taxable out-of-pocket expenses will be made on a payroll check. In order to achieve payroll tax withholding on an approved taxable payment made by the School to a third-party, the payroll office will add the amount to your gross pay and enter a miscellaneous deduction for the same amount. Under certain circumstances this may result in a $2 bi-weekly paycheck because the IRS also requires that the taxes be withheld as closely as possible to the date of the actual event instead of waiting until the next monthly paycheck. When this happens, the miscellaneous deduction will be less than the total deduction required. The balance of the deduction will be taken out of the next monthly paycheck.

The School must use this procedure in order to comply with the tax law. If you have any questions, please contact Mary Withington at 314-935-4573. Or, if you prefer Pat Stern, Tax Accounting (314-935-8283).

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