Travel & Relocation

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Federal and State Income Tax

In accordance with Federal and state tax laws, all relocation expenses will be subjected to tax criteria with the travel system to determine income tax liability. The travel system will determine which expenses are subject to withholding and compute and withhold Federal, state, and FICA/HIT taxes from those travel vouchers that include expenses that warrant tax withholding. Therefore, the amount entered and processed will not agree with the actual amounts entered on a travel voucher. The employee will receive a Computation of Employee Moving Expense Reimbursement Voucher and a Year to Date letter each time a travel voucher is processed. This letter shows the taxes withheld from the travel voucher. NOTE: The taxes withheld will also affect the amount of the travel advance applied on the travel voucher. An employee may assume they repaid their travel advance when actually NFC could not fully reduce the advance because of the amount of taxes withheld from the total claim.

The rate for computing Federal tax withholding is 28 percent and state tax is 10 percent of the total Federal taxes withheld.

Last Updated 10/02/2007