Moving and Related Expenses

General Information

To be considered a Qualified Moving Expense, you must meet two criteria:

1. The distance between an employee's new primary place of work and residence, must be at least 50 miles or more, than the distance between the employee's previous principal place of work and residence
   
   
2. During the 12 months immediately following the employee's arrival in the new location, the employee is employed full time for at least 39 weeks

Withholding and Reporting

• Qualified moving expenses paid directly to an employee are reflected for informational purposes only in Box 12 (Code P) on the W-2. Federal, FICA (Social Security, OASDI and Medicare) and State gross income is not increased -- such payments are not taxable income
  
  
• Qualified moving expenses paid directly to a third party will not be reflected on an employee's W-2. Federal, FICA and State gross income is not increased -- these payments are not taxable income
  
  
• Non-qualified moving expenses paid directly to an employee are taxable with all taxes withheld from an employee's paycheck (Federal, FICA and State, at the extra compensation rate totaling 37.95%) and Federal, FICA and State gross incomes is increased
  
  
• Non-qualified moving expenses paid directly to a third party will be reflected on an employee's W-2, Federal, FICA and State gross income is increased -- these types of payments are taxable income.
  

For additional information regarding Employee Moving and Related Expenses, please refer to the following links or contact Tax Services:

Employee Moving and Relocation Expenses Tax Treatment (Inside the U.S.)

US Citizens and Permanent Residents Overseas Moving and Relocation Expenses Tax Treatment (Outside the U.S.)