Moving Expense Information
The Tax Cuts and Jobs Act passed in December 2017 has changed the taxability of moving expense payments.
Eligibility
Faculty (at the rank of instructor and above), academic, professional, and executive management staff who are either new or reassigned and are moving from outside a radius of 50 miles to the MSU work location. For example, if the former job location was 3 miles from the former home, the new job location must be at least 53 miles from that former home. The distance test only considers the location of the former home and does not take into consideration the location of the new home. Payment for moving expenses is not an entitlement; in all cases, it is an option to be agreed upon between the unit administrator(s) and the prospective faculty/staff member and must be included in the employee’s offer letter.
Approvals
Moving expenses up to $10,000 require approval of the Dean, Director or Chairperson. Amounts exceeding $10,000 must be approved by the Provost (or designate) or the Executive Vice President for Administrative Services (or designate), or the Vice President for Finance and Treasurer (or designate). An MAU or unit may establish a more restrictive moving expense policy and may limit moving expenses as deemed appropriate.
Payment
Moving expenses must be paid to the employee as a taxable allowance. In conformity with IRS regulations, the entire moving expense allowance will be reported as taxable income and included on the employee’s W-2 statement at the end of the year. Applicable taxes will be withheld and reported.
For a new employee, employment forms must be completed (i.e. the employee’s job must be in the HR/Payroll system) before moving expenses can be paid.
- For faculty and academic staff, complete an Additional Payment Form (Exhibit 55-J) to process the Moving Expense Allowance payment. Attach the offer letter or agreement supporting the allowance amount.
- For support staff, complete a Special Payment Authorization Form (Exhibit 55-I) to process the Moving Expense Allowance payment. Attach the offer letter or agreement supporting the allowance amount.