Travel Services

Employee Relocations

Federal law requires that employees pay taxes on certain relocation expenses.  The University is required to report all relocation expenses (taxable and nontaxable) on employees' W-2 forms.  Note: The IRS does not require WSU to report moving expenses on the employee's W-2 which are paid directly to a third-party on behalf of the employee [Reference IRS Publication 15-B (2014)]



 


 

Eligible Employees

The University may pay relocation expenses for employees hired for the following types of positions:

  • Permanent executive, professional, or administrative personnel in supervisory positions. (SAAM 60.10.30)
  • Permanent faculty. (SAAM 60.10.30)
  • Temporary faculty if the position is supported by sponsored funds and the sponsor agrees to pay relocation expenses.

When there is an inability to fill a critical lower level position, the University may pay moving expenses. In such a case, the employing department is responsible for preparing and retaining justification. Contact Purchasing for specific requirements. (SAAM 60.10.30)

 


Taxable Expenses

Taxable expenses are listed below and are shown with nontaxable expenses on the table in 70.60. Refer to 70.61 to process reimbursement for nontaxable moving expenses. Taxable expenses include the following if paid or reimbursed by the University:

  • All meal expenses incurred while moving from the old residence to the new residence.  Any meal expenses incurred and reimbursed by WSU after arrival.
  • House hunting trips prior to move: Travel expenses, e.g., transportation including airfare, auto rental, mileage, meals, and lodging for the new hire.
  • Costs for maintaining a temporary residence in the area of the new job. Includes lodging at the new location except for the first night.
  • Storage charges accruing after 30 days of storage except for those incurred in-transit and for foreign moves.

 

 See the following chart of taxable relocation expenses and nontaxable relocation expenses:

Expense Category

Taxable Relocation Expenses 
(see also 70.62)

Nontaxable Relocation Expenses 
(see also 70.61)

Meals

All meal expenses incurred while moving from the old residence to the new residence.
Meal expenses incurred after arrival.

None

Travel

House hunting trips prior to move: Travel expenses, e.g., transportation including airfare, auto rental, mileage, meals, and lodging for the new hire.

Travel for the new hire including transportation and lodging incurred during the move to the new home, including the day of arrival. Lodging expenses for one night in the area of the former home if the furniture has been moved. Parking fees and tolls.

Mileage

Standard mileage for that portion of mileage costs that exceed $0.19 per mile for up to two vehicles.

Standard mileage on personal use of motor vehicles at $0.19 per mile for up to two vehicles.

Shipping Costs

Costs of shipping household goods and personal effects (including personal vehicle) reimbursed to the employee or paid directly by the University. Packing, crating, and transporting goods.

Transit Insurance

Cost of transit insurance.

Mobile Home Moves

Cost of moving a mobile home.

Professional Equipment

Cost of moving professional equipment/books which are not part of the employee's personal household goods.

Temporary Residence

Costs for maintaining a temporary residence in the area of the new job. Includes lodging at the new location except for the first night.

Storage

Storage charges accruing after 30 days of storage except for those incurred in-transit and for foreign moves.

Storage charges for 30 days or less, in-transit storage, and for foreign moves.

Relocation Allowance

Relocation allowance provided in addition to or in lieu of expenses related to the relocation of household goods.

 


 

Obtaining the Form

The employing department processes a Relocation Expense Request to request payment of taxable relocation expenses. Access the PDF form master on 70.62.4 to obtain the form.


Source of Funds

Most taxable relocation expenses are to be paid from 17A (discretionary) accounts only. The following taxable relocation expenses may be supported by state funds as well as discretionary accounts:

  • Costs for storage between 30 and 60 days
  • Meals
  • Relocation allowances that do not exceed the total of the applicable maximum daily lodging rates for one person.
  • Mileage
  • Airfare
  • Temporary Housing

Note:  All housing hunting expenses are to be supported with 17A (discretionary) accounts only.


Processing Reimbursements

All reimbursable taxable relocation expenses, as noted on the chart above, are processed by Travel Services and paid via Payroll Services.  All reimbursable nontaxable relocation expenses are processed and paid by Travel Services.  Both taxable and nontaxable relocation expenses are to be reported on the employee’s W-2.


Department Responsibilities

The employing department initiates payment of taxable relocation expenses by completing and submitting an approved Relocation Expense Request to Travel Services.  Departments are responsible for ensuring that all relocations are reported to Travel Services as applicable.


Airfare Purchased on CTA

All airfare purchased for employee relocations or house hunting trips must be reported on the Relocation Expense Request form and routed to Travel Services.  Departments are solely responsible for ensuring these costs are identified and reported as required.

Travel Services, PO Box 641025, Washington State University, Pullman WA 99164-1025, 509-335-2034, Contact Us