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Level 2

Moving Expenses

Our Executive Director (a minister) incurred moving expenses during tax year 2018.  He was reimbursed for those expenses by us, and those reimbursements are supposed to be part of his Box 1 on his w-2 - at least the way I understand the new laws.  He was paid the reimbursement on his paycheck, but that amount is not showing up on his W-2 in Box 1.  I thought I had set the Moving Expense payroll item up correctly, but obviously, I did not, since the reimbursement is not showing up on the W-2 where it's supposed to - or anywhere.  Realizing that I'll have to correct the 941 for whatever quarter the reimbursement happened, how can I go back and fix this?

Solved
Best answer 01-25-2019

Accepted Solutions
Anonymous
Not applicable

Re: Moving Expenses

I appreciate your time getting back to us, stmaryssewanee,

 

I can add a bit more about correcting the moving expense reimbursement reporting on your W-2 form.

 

Rustler shared a great answer. Since moving expense reimbursements beginning 2018 must be subject to income and employment taxes, you can change the payroll item's default Tax Tracking Type. This way, it gets reported correctly on your employee's W-2. Let me guide you through the steps:

  1. Go to Lists and select Payroll Item List.
  2. Double-click the reimbursement item.
  3. Click Next.
  4. Select an expense from the drop-down lists and click Next
  5. From Tax Tracking Type drop-down list, select Fringe Benefits.
  6. Click Next thrice.
  7. Click Finish.

Here's how the tax item affects your report:

 

 

That should get you on the right track, stmaryssewanee. You might want to check this article to learn more about creating taxable fringe benefit items: How to create taxable fringe benefits payroll items

 

Should you need further assistance, please feel free to notify me anytime. I'll be more than happy to help you. Have a good one!

View solution in original post

7 Comments
Level 7

Re: Moving Expenses

Your should check with you tax accountant, but I do not think reimbursement of moving expenses is payroll item that should show on the W2.  You are simply reimbursing the employee for costs.  The company is taking a deduction for the expense.  Adding to the paycheck just reimburses him on the paycheck level.  He cannot deduct the cost of relocation since he did not pay for it out of pocket.

Anonymous
Not applicable

Re: Moving Expenses

Hi there, @stmaryssewanee,

 

Thanks for getting in touch with the Community. I can add a bit more about this payroll issue.

 

The way your payroll items affect your tax reporting depends on the Tracking Type selected during the setup. @QBsguru is correct, consulting an accounting professional is the best option you can do to check how the reimbursement should be reported on your employee's W-2 form.

 

Additionally, you have the option to check the tax tracking type you used on the reimbursement. Typically, choosing None does not report the tax item to your forms. Here's how to check that:

  1. Go to Lists and select Payroll Item List.
  2. Double-click the reimbursement item.
  3. Click Next twice.
  4. You can toggle the available tax tracking types on the drop-down to check which applies to your reporting.

Below are sample illustrations on how QuickBooks treat your payroll items on your forms:

 

 

 

That should do it, @stmaryssewanee. Please feel free to get back to me if you need further assistance with your W-2 report. I'll be glad to help. Have a good one!

Level 15

Re: Moving Expenses

I read it diffrerently

Assuming the move happened in 2018, moving reimbursement is subject to employee income taxes

 

https://www.irs.gov/newsroom/tax-reform-brings-changes-to-qualified-moving-expenses

 

https://blog.turbotax.intuit.com/tax-reform/tax-reform-101-what-you-should-know-about-changes-to-the...

Level 2

Re: Moving Expenses

Yes, the new tax laws require that beginning in 2018, reimbursed moving expenses be reported in Box 1 on the W2.  Even though I thought I set up the Moving Expense payroll item correctly, it is not showing up on his W2 or the 941 in that quarter.  I just need to know how to correct the amount on his W2 in QB.  If so, how do I go about doing that, or if it can't be done in QB, what do I do in lieu of changing it in QB to make the books correct.

Anonymous
Not applicable

Re: Moving Expenses

I appreciate your time getting back to us, stmaryssewanee,

 

I can add a bit more about correcting the moving expense reimbursement reporting on your W-2 form.

 

Rustler shared a great answer. Since moving expense reimbursements beginning 2018 must be subject to income and employment taxes, you can change the payroll item's default Tax Tracking Type. This way, it gets reported correctly on your employee's W-2. Let me guide you through the steps:

  1. Go to Lists and select Payroll Item List.
  2. Double-click the reimbursement item.
  3. Click Next.
  4. Select an expense from the drop-down lists and click Next
  5. From Tax Tracking Type drop-down list, select Fringe Benefits.
  6. Click Next thrice.
  7. Click Finish.

Here's how the tax item affects your report:

 

 

That should get you on the right track, stmaryssewanee. You might want to check this article to learn more about creating taxable fringe benefit items: How to create taxable fringe benefits payroll items

 

Should you need further assistance, please feel free to notify me anytime. I'll be more than happy to help you. Have a good one!

View solution in original post

Level 2

Re: Moving Expenses

Thank you so much!

Anonymous
Not applicable

Re: Moving Expenses

You are very much welcome, stmaryssewanee!

 

It's my pleasure to be of your assistance today. Should you need further help with QuickBooks, please know that I am here to help you. Just mention me on your post and I'll be glad to get back to you.

 

I appreciate your time today. Wishing you continued success! Have a great weekend.

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