Cornell units sometimes elect to pay for the relocation of newly recruited, regular employees. Payments for such expenses must be authorized at the unit level. Authorization depends on a number of factors, including whether the unit's budget can accommodate these costs.
Some units opt to limit moving expenses to those defined by the IRS as "direct moving" (see Complying with IRS Guidelines).
If a commercial moving company is involved, units must work with Supply Management Services to process a purchase order.
Units choosing to cover indirect costs associated with a move, such as temporary lodging in Ithaca, may process a one-time, job-related allowance, or complete a payment request for "indirect moving."
Note: We recommend using the allowance method, because it saves administrative time, can be processed with the original payroll appointment, and is no more costly to the unit and employee than processing a payment request.
| Option | Receipts Required? |
Subject to Fringe Costs? |
Subject to Tax Withholding? |
Subject to W-2 Reporting? |
|---|---|---|---|---|
| Process a one-time, job-related allowance (processed by the department human resource representative using same method as was used to make the payroll appointment) | No | Yes, minimum |
Yes | Yes |
| Complete paper travel voucher | Yes | Yes | Yes | Yes |
The IRS determines whether a payment for moving is taxable. Expenses for moving that meet all of the below requirements are exempt from taxation. Expenses that fail to meet any one of these requirements are taxable (i.e., subject to fringe benefit costs, W-2 reporting, and tax withholding).
Direct moving does not include the cost of meals and entertainment. Mileage reimbursement is based on the IRS's established moving rate, which is lower than the established business expenses rate.
For more IRS information, see IRS Publication 521, "Moving Expenses."
