OSPS E-News ~ Qualified moving expense reimbursements - new guidance

[Announcements from OSPS to the users of the Oregon State Payroll Application]

Payroll professionals,

Earlier this year in response to federal tax changes OSPS worked with agencies who were reimbursing employees for qualified moving expenses from a prior year (mainly 2017) that were paid in 2018.  The decision at that time was to have those reimbursements entered as taxable.

Now the IRS has provided guidance that speaks to that situation.  Reimbursements for qualified moving expenses from a prior year are generally considered tax free.

What does that mean?

If your agency had employees who got reimbursed for qualified moving expenses and it was for a prior year then it would now need to be changed to non-taxable.

For example - the pay code MVT was used back in February for a qualified moving reimbursement from a prior year.  Now you will need to change that to MVN and set a corrective.

Best way to see if your agency is impacted by this is to run a Datamart query for the MVT pay code and review those reimbursements.

https://www.irs.gov/pub/irs-drop/n-18-75.pdf - link to IRS guidance

If you have any questions about this please contact the OSPS help desk 503-378-6777 or osps.help at oregon.gov<mailto:osps.help at oregon.gov>.

Thanks,

Seth Lewis
Manager
DAS/EGS/FBS/Oregon Statewide Payroll Services
503-373-0198, direct
503-378-3518, fax
503-378-6777, OSPS Help Desk
seth.lewis at oregon.gov<mailto:seth.lewis at oregon.gov>
Visit Our Online Resource Center:  State of Oregon: Oregon Statewide Payroll Services<http://www.oregon.gov/das/Financial/Payroll/Pages/Index.aspx>


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