41 CFR § 302-17.22 - Procedures for calculation and payment of the WTA.
---
identifier: "/us/cfr/t41/s302-17.22"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "41 CFR § 302-17.22 - Procedures for calculation and payment of the WTA."
title_number: 41
title_name: "Public Contracts and Property Management"
section_number: "302-17.22"
section_name: "Procedures for calculation and payment of the WTA."
chapter_number: 302
chapter_name: "RELOCATION ALLOWANCES"
subchapter_number: "F"
subchapter_name: "MISCELLANEOUS ALLOWANCES"
part_number: "302-17"
part_name: "17—TAXES ON RELOCATION EXPENSES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 5724b; 5 U.S.C. 5738; E.O. 11609, 36 FR 13747, 3 CFR, 1971-1975 Comp., p. 586."
regulatory_source: "FTR Case 2025-05, 90 FR 56893, Dec. 8, 2025, unless otherwise noted."
cfr_part: "302-17"
---
# 302-17.22 Procedures for calculation and payment of the WTA.
Each time an agency pays a covered, taxable relocation expense, regardless of whether it is a reimbursement, allowance, or direct payment to a vendor, it is considered “supplemental wages” as defined in 26 CFR 31.3402(g)-1(a) (see also IRS Publication 15, Employer's Tax Guide). Employees owe taxes on the WTA itself because, like most other relocation allowances, it is taxable income. To reimburse employees for the taxes on the WTA itself, agencies compute the WTA by using the grossed-up withholding formula in this section and the appropriate supplemental wage rate, as specified in IRS Publication 15. This rate, along with examples of how to calculate the WTA, is published in an FTR bulletin available at *https://gsa.gov/ftrbulletins.* The formula for calculating the WTA is: WTA = R/(1 − R) × Expense, where R is the withholding rate for supplemental wages.