For example, moving truck expenses and storage costs for foreign moves and while items are in-transit are reimbursable from State funds. Taxable moving expenses will be subject to income tax withholding, social security and Medicare taxes . The employee's expenses must have a business connection. The employee cannot deduct any part of these expenses that is for meals. The nontaxable portion of mileage reimbursements is 10 cents a mile .
Any excess is taxable.
Reasonable expenses are those expenses that are reasonable for the circumstances of the employee's move. How MUSC reimburses a new employee for moving expenses 1. B. Initiating a Moving Expense Reimbursement Request 1. Payments made directly to moving companies should be disbursed from AP and treated as nontaxable transactions since the charges incurred should only be for moving household goods. There is no reporting obligation.