Moving

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.

This page provides information for units on the following:

• Determining the Payment Amount
• Processing the Payment
• Covering Indirect Costs
• Complying with IRS Guidelines

 Determining the Payment Amount
Some units opt to limit moving expenses to those defined by the IRS as "direct moving" (see Complying with IRS Guidelines ).

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 Processing the Payment
If a commercial moving company is involved, units must work with the Office for Purchasing Services  to process a purchase order.

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 Covering Indirect Costs
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.

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 Complying with IRS Guidelines
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).

1. The move must be closely related in time and place to the start of work at a new job.
2. The move must be over a minimum distance of 50 miles.  Contact the Tax Compliance Office  if the former residence is in close proximity to Cornell.
3. The expenses must meet the IRS's narrow definition of "direct moving."  Direct moving expenses are expenses for moving household goods and the employee (including family) from the previous primary residence to the new job location.

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, visit IRS Publication 521, "Moving Expenses"  .

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