[Federal Register Volume 62, Number 46 (Monday, March 10, 1997)]
[Rules and Regulations]
[Pages 10708-10709]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5843]


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GENERAL SERVICES ADMINISTRATION

41 CFR Parts 302-1, 302-2, 302-3, 302-7, 302-8, 302-9, and 302-11

[FTR Amendment 58]
RIN 3090-AG17


Federal Travel Regulation; Authority for the Administrator of 
General Services To Issue Regulations; Authority To Waive Limitations 
on Relocation Allowances When an Employee Is Relocated To or From a 
Remote or Isolated Location; Technical Correction To Relocation Income 
Tax (RIT) Allowance

AGENCY: Office of Governmentwide Policy, GSA.

ACTION: Final rule.

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SUMMARY: This final rule amends the Federal Travel Regulation (FTR) to 
reflect the direct authority conferred by statute on the Administrator 
of General Services to issue regulations implementing subchapter II of 
chapter 57 of title 5, United States Code, and to authorize agencies to 
waive certain statutory and regulatory limitations for an employee 
relocating to or from a remote or isolated location. This amendment 
also makes a technical correction to the RIT allowance. The amendment 
implements statutory changes, and is intended to improve the treatment 
of an employee transferred to a remote or isolated location.

DATES: This final rule is effective March 22, 1997.
    Applicability: This rule applies to an employee whose effective 
date of transfer (date the employee reports for duty at the new 
official station) is on or after March 22, 1997.

FOR FURTHER INFORMATION CONTACT: Robert A. Clauson, Travel and 
Transportation Management Policy Division (MTT), Washington, DC 20405, 
telephone 202-501-0299.

SUPPLEMENTARY INFORMATION: On September 23, 1996, the President signed 
into law the Federal Employee Travel Reform Act of 1996 (Pub. L. 104-
201). Section 1722 of the Act transfers from the President to the 
Administrator of General Services authority to issue regulations 
implementing subchapter II of chapter 57 of title 5, United States 
Code, unless otherwise specified in subchapter II. Previously, the 
Administrator had exercised implementation authority under E.O. 11609, 
36 FR 13747, 3 CFR, 1971-1975 Comp., p. 586; E.O. 12466, 49 FR 7349, 3 
CFR, 1984 Comp., p. 165; and E.O. 12522, 50 FR 26337, 3 CFR, 1985 
Comp., p. 375. This amendment reflects the statutory change of 
authority.
    Section 1722 of the Act also directs the Administrator to authorize 
heads of agencies or their designees to waive any limitation in 
subchapter II of chapter 57 of title 5, United States Code, or in any 
implementing regulation for an employee relocating to or from a remote 
or isolated location who otherwise would suffer hardship. This 
amendment implements the limitation waiver provisions of section 1722 
of the Act.
    This amendment also makes a technical correction to the RIT 
allowance. The withholding rate for supplemental wages was raised from 
20 percent to 28 percent in 1995. This amendment modifies the 
withholding tax allowance (WTA) provisions to reflect the 28 percent 
withholding rate.
    The General Services Administration has determined that this rule 
is not a significant regulatory action for the purposes of Executive 
Order 12866 of September 30, 1993. This final rule is not required to 
be published in the Federal Register for notice and comment. Therefore, 
the Regulatory Flexibility Act does not apply. This rule also is exempt 
from Congressional review prescribed under 5 U.S.C. 801 since it 
relates solely to agency management and personnel.

List of Subjects in 41 CFR Parts 302-1, 302-2, 302-3, 302-7, 302-8, 
302-9, and 302-11

    Government employees, Income taxes, Relocation allowances and 
entitlements, Transfers.

    For the reasons set out in the preamble, 41 CFR parts 302-1, 302-2, 
302-3, 302-7, 302-8, 302-9, and 302-11 are amended to read as follows:

[[Page 10709]]

PART 302-1--APPLICABILITY, GENERAL RULES, AND ELIGIBILITY 
CONDITIONS

    1. The authority citation for part 302-1 is revised to read as 
follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13474, 3 CFR, 1971-1975 Comp., p. 586.

Subpart A--New Appointees and Transferred Employees

    2. Section 302-1.15 is added to subpart A to read as follows:


Sec. 302-1.15  Waiver of limitations for an employee relocating to or 
from a remote or isolated location.

    The head of an agency or his/her designee may waive any limitation 
contained in subchapter II of chapter 57 of title 5, United States 
Code, or in any regulation (including this chapter) implementing those 
statutory provisions, for any employee relocating to or from a remote 
or isolated location when the following conditions are met:
    (a) The limitation if not waived would cause the employee to suffer 
a hardship; and
    (b) The head of the agency or his/her designee certifies in writing 
that the limitation is waived and the reason(s) for the waiver.

PART 302-2--ALLOWANCES FOR SUBSISTENCE AND TRANSPORTATION

    2. The authority citation for part 302-2 is revised to read as 
follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13474, 3 CFR, 1971-1975 Comp., p. 586.

PART 302-3--ALLOWANCE FOR MISCELLANEOUS EXPENSES

    3. The authority citation for part 302-3 is revised to read as 
follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13474, 3 CFR, 1971-1975 Comp., p. 586.

PART 302-7--TRANSPORTATION OF MOBILE HOMES

    4. The authority citation for part 302-7 is revised to read as 
follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13474, 3 CFR, 1971-1975 Comp., p. 586.

PART 302-8--TRANSPORTATION AND TEMPORARY STORAGE OF HOUSEHOLD GOODS 
AND PROFESSIONAL BOOKS, PAPERS, AND EQUIPMENT

    5. The authority citation for part 302-8 is revised to read as 
follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13474, 3 CFR, 1971-1975 Comp., p. 586.

PART 302-9--ALLOWANCES FOR NONTEMPORARY STORAGE OF HOUSEHOLD GOODS

    6. The authority citation for part 302-9 is revised to read as 
follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13474, 3 CFR, 1971-1975 Comp., p. 586.

PART 302-11--RELOCATION INCOME TAX (RIT) ALLOWANCE

    7. The authority citation for part 302-11 is revised to read as 
follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13474, 3 CFR, 1971-1975 Comp., p. 586.

    8. Section 302-11.7 is amended by revising paragraphs (c) and (d) 
to read as follows:


Sec. 302-11.7  Procedures for determining the WTA in Year 1.

* * * * *
    (c) Determination of Federal withholding tax rate (FWTR). Moving 
expense reimbursements constitute supplemental wages for Federal income 
tax purposes. Therefore, an agency must withhold at the withholding 
rate applicable to supplemental wages. Currently, the supplemental 
wages withholding rate is 28 percent. The supplemental wages 
withholding rate should be used in calculating the WTA unless under an 
agency's withholding procedures a different withholding rate is used 
pursuant to IRS tax regulations. In such cases, the applicable 
withholding rate shall be substituted for the supplemental wages 
withholding rate in the calculation shown in paragraph (d) of this 
section.
    (d) Calculation of the WTA. The WTA is calculated by substituting 
the amounts determined in paragraphs (b) and (c) of this section into 
the following WTA gross-up formula:

    Formula:
    [GRAPHIC] [TIFF OMITTED] TR10MR97.022
    
    Where:
    Y = WTA
    X = FWTR (generally, 28 percent)
    N = nondeductible moving expenses/covered taxable reimbursements
    Example:
    If:
    X = 28 percent
    N = $20,000
    Then:
    [GRAPHIC] [TIFF OMITTED] TR10MR97.023
    
    Y = .3889($20,000)
    Y = $7778.00
* * * * *
    Dated: February 18, 1997.
David J. Barram,
Acting Administrator of General Services.
[FR Doc. 97-5843 Filed 3-7-97; 8:45 am]
BILLING CODE 6820-34-P