Recent experiments on steel columns under multi-axis cyclic loading suggest that a steel column may experience appreciable axial shortening due to local buckling. Reconnaissance reports from recent earthquakes indicate that a number of embedded column base (ECB) connections in steel frame buildings were found to be lightly damaged although they are expected to remain elastic. As a result, the amount of inelastic damage concentrated in the respective steel columns was much less than it was expected to be. This paper investigates the influence of the ECB strength on the residual deformations of first story interior steel columns in steel moment resisting frames (MRFs) under multi-axial cyclic loading. The evaluation is conducted with rigorous finite element (FE) simulations. The developed FE model is able to simulate the pinching hysteretic behavior of typical ECBs. The parametric study involves two main cases. In the first one the ECB remains in elastic. In the second case the inelastic behavior is spread to the ECB and the steel column itself. The simulation results suggest that the resultant plastic deformation within the steel column is much smaller in the latter. The onset of column local buckling is delayed; therefore, the residual column axial shortening becomes fairly minimal. In particular, it is reduced by 50% at lateral drift demands associated with low-probability of occurrence earthquakes.