Relocation/Moving Allowance Reminder

There are two options for the timing of moving allowance payments:

Prior to Employment Start Date: If the moving allowance is paid in advance of the employment start date, no taxes are withheld at the time of issuance. However, applicable taxes will be withheld from one or more regular paychecks once the employee is active on Payroll. The Tax Office will notify the employee by email in advance of the taxation. The taxable moving benefit can be found at the bottom of the paystub located within MyBama in each period where taxation occurs. The number shown on the pay stub is the amount of benefit that is being taxed in that pay period, not the amount of taxes being deducted. The tax deduction amounts will vary depending on the employee’s individual tax bracket and filing status.
After Employment Start Date: If the moving allowance is paid after the employment start date, the payment is processed through Supplemental Payroll. For this option, applicable taxes are withheld at the time of payment with no impact on subsequent paychecks.

For further details, refer to the following website links:

A/P – Spending Policy – Section 9.0 Relocation/Moving Expenses: