To: MOU Financial Leads, University Business Managers, HR Officers and Secondary Contacts
From: Travis Henderson, Director of Procurement Services, Walter Miller, Director of Payroll Services, Janet Rupert, Director of Travel and Disbursement Services
We are writing to make you aware of some changes due to the 2018 Tax Reform law.
Tax rate changes: Paychecks beginning with the biweekly paid on Feb. 16, 2018, and monthly paid on Feb. 28, 2018, will reflect the updated 2018 federal tax rates. These rate changes are not retroactive. A formal notice concerning this change will be sent to employees prior to the Feb. 16, 2018, payday.
Moving expense reimbursements: These reimbursements ceased to be non-taxable as of Jan. 1, 2018, which mean these reimbursements are taxable as wages to the individual. This includes any moving expense reimbursements and direct payments to vendors on behalf of individuals which are reported to Payroll Services after Jan. 1, 2018. For all moving expenses including direct payments, it is critical that units use the moving expense chartfield account (528430). This will ensure these expenses are reported to Payroll. Finance Policy 1270, Moving Expenses Reimbursement, and Procedure 1270.1, Reporting Moving Expenses for Reimbursement, are currently under review. We will update you when final changes to those documents are made.
If you have questions concerning the current moving expense reimbursement process, please contact Janet Rupert at firstname.lastname@example.org. If you have a payroll tax question, please contact Stephanie May, Payroll Tax Accountant at email@example.com.