[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