Eligibility: In accordance with IRS guidelines, the ‘distance test’ and ‘time test’ described below must be satisfied as a result of the employee’s move to be eligible for moving expense reimbursement.
Distance Test: The College of Wooster must be at least 50 miles farther than the employee’s previous workplace from the employee’s former residence. The shortest of the more commonly traveled routes must be used in determining the result of the distance test. For example, if the employee’s previous workplace was located 3 miles from the former residence and the location of employment at the College of Wooster is 60 miles from the former residence, the College is 57 miles further than the previous workplace thus the distance test has been satisfied.
Time Test: The employee must work full time in the general are of the new workplace for at least 39 weeks during the 12 months immediately following the employee’s move.
Taxability: Effective January 1, 2019, the IRS defines all moving expenses to be taxable income to the employee. Examples of taxable moving expenses include, but are not limited to, the following: 1) reasonable expenses of moving household goods and personal effects for one trip, including packing, crating and transporting; 2) traveling (fuel or mileage) to new residence; 3) tolls and parking fees 4) pre-move house-hunting expenses; 5) expenses associated with the selling, buying, or renting of a home; 6) expenses for temporary living quarters; 7) meal expenses incurred while moving.
Documentation: The Taxable Moving Expense Reimbursement Form should be completed and returned to the Payroll Office with receipts for all documented expenses.
Reimbursement: Reimbursements are normally included with the employee’s paycheck following the receipt of all required information and review by the Payroll Manager.