20-P-001 Moving Expense Reimbursements Subject to KPERS (July 2, 2019)
(Original Signature on File)
Pursuant to the Tax Cuts and Jobs Act of 2017, employers must include moving expense reimbursements in employees’ wages. The new tax law suspends the exclusion for qualified moving expense reimbursements with two exceptions:
Exception 1: Members of the U.S. Armed Forces can still exclude qualified moving expense reimbursements from their income if:
- They are active duty
- They move pursuant to a military order and incident to a permanent change of station
- The move expenses would qualify as a deduction if the employee didn't get a reimbursement
Exception 2: Employers may exclude from wages any 2018 reimbursements to or payments on behalf of employees for moving expenses incurred for a move that took place prior to January 1, 2018, and which would have been deductible had they been paid prior to that date.
As a result of this tax law change, KPERS is advising that the employee moving expense reimbursements will now be subject to KPERS. Any applicable employee moving expense reimbursements processed for payments on and after July 1, 2019 using earnings codes MVT and MVG should now be subject to KPERS calculations.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective with the payroll period noted above.
Printable version of 20-P-001