Payroll Services Office of The University of Texas at San Antonio provides payroll services to UTSA's three campuses: Main Campus, Downtown Campus and Institute of Texan Cultures.
MISSION: Payroll Services Office is to provide accurate and quality payroll operations and customer service to our client departments and individuals.Payroll Services general responsibilities are:
|Click to view for information on tax reform changes related to relocation reimbursements.|
Moving Expenses Taxable Effective January 1, 2018
The recent federal tax legislation removes exemptions for moving expense direct payments and reimbursements. Under the new law, which became effective January 1, 2018, all payments for moving expenses to, or on behalf of an employee must be reported as wages and taxes must be withheld.
What does this mean for relocation payment and reimbursement requests?
Beginning immediately, all reimbursements of moving expenses are taxable to the employee.
If we are offering relocation benefits to an employee, how should that be done?
Because of this change, future offer letters and employment contracts that include relocation benefits should provide a lump sum payment as opposed to a payment reimbursing only eligible expenses. The wording should include the offering of "â€¦a lump sum payment of $X to help cover relocation expenses. The lump sum payment is fully taxable to the employee."
What if the employee's relocation package was agreed upon in 2017?
The Payroll Office will work with those involved on the handling of 2017 agreed-upon relocation benefits.
What if a third party, like a moving company, is paid directly?
These payments are also now taxable. Instead of paying a moving company directly, future offer letters and employment contracts that include relocation benefits should provide a lump sum payment. The wording should include the offering of "â€¦a lump sum payment of $X to help cover relocation expenses. The lump sum payment is fully taxable to the employee."
If the payments are taxable, does the relocation reimbursement documentation need to be submitted?
Instead of the previous relocation documentation, for relocation benefits offered in 2018 or after, a Special Payment Request Form should be submitted to request the payment. The Form should be submitted with the Offer of Employment Letter or SOF form showing relocation approval by the appropriate Vice President, Provost or the President.
For more information, contact Payroll Services at 210-458-4280, or email.
In response to the new tax reform legislation, the IRS released Notice 1036, which updates the income tax withholding tables for 2018 and reflects changes made by the tax reform legislation.
The updated withholding information, posted on IRS.gov, shows the new rates for employers to use during 2018. Employers have until February 15, 2018, to implement the changes. Payroll checks issued after February 15, 2018, have to reflect the 2018 tax changes.
If you want to change your W-4 exemptions, make them by February 16 if you are a monthly employee to be reflected on your check dated March 1, 2018. Semi-monthly employees should change exemptions by February 16, 2018 to be reflected on their check dated February 22, 2018.
Questions about tax implications should be referred to your tax accountant or your tax preparer.
If you need additional information about IRS release Notice 1036, contact the Payroll Office at 210-458-4280, or visit the IRS website.
More information is available in the IRS Withholding Tables Frequently Asked Questions.
Instructions for consenting to receive your W-2 electronically can be found here: Online W-2 Instructions
Note: For employees who terminate during the calendar year, your W-2 will be mailed to the home address on file. Please be sure to update your home address prior to leaving the university so that you receive your W-2 at the new address.
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