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Finance & Accounting

BPM-214 Disbursements - Moving Expenses

Revised April 1, 2013

Payment of moving expenses may be authorized for new employees. Payment of moving expenses may also be authorized when it is in the best interests of the University to move a current employee from one campus or location to another. The President, Vice President, Chancellor, Hospital Chief Executive Officer, or a designee must authorize all moving expenses.

Moving expense payments are not to exceed 10% of the employee's annual salary or the actual cost of moving, whichever is less. In special circumstances, the President, Vice President, Chancellor, or Hospital Chief Executive Officer may authorize payment for actual moving expenses in excess of 10% of the employee's salary.

Payment of moving expenses is not an entitlement and will not be authorized in all circumstances. Departments may limit reimbursement to less than actual expenses. Prior to making an offer to an employee for payment of moving expenses, the payment must be approved by the administrator responsible for funding, and authorized by the President, Vice President, Chancellor, Hospital Chief Executive Officer, or a designee.

Under this policy, moving expenses include the reasonable expenses of moving the employee's household goods and personal effects, and travel (including lodging but not meals) to the employee's new home in accordance with Internal Revenue Service regulations.

ADMINISTRATIVE RESTRICTIONS

To qualify for reimbursement:

  1. The new job location must be at least 50 miles farther from the employee's former home than the previous job location was from the employee's former home;

    And

  2. Generally, moving expenses must be incurred within one year from the date the employee started work at the new location. If the moving expenses were not incurred within one year, the employee must show that circumstances existed that prevented the move within the one-year time. Exceptions may be made in accordance with Internal Revenue Service guidelines.

If the request for reimbursement for moving expenses is submitted to the hiring department within 60 days from the end of the move, the expenses will be reported as non-taxable on the employee's W-2. If later than 60 days they will be reported as taxable income on the W-2.

ALLOWED REIMBURSABLE EXPENSES

Allowable Expenses for Travel by Vehicle

If a vehicle is used to take the employee, members of their household, or their personal effects to their new home, reimbursable expenses may be figured using either:

  1. Actual expenses, such as gas and oil for the vehicle and rental of the vehicle, (general repairs, maintenance, or insurance are not allowable).

    Or

  2. The mileage reimbursement rate set by the Controller's Office by January 1 for each calendar year and posted on the Controller's website.  The University's mileage reimbursement rate is three cents less than the IRS mileage rate.

 
NOTE: The IRS mileage rate for use of a personal vehicle for moving differs from the mileage rate for employee business travel.

Allowable Expenses for Travel and Lodging
  1. Transportation from the former home to the new home for the employee and members of their household other than by car (i.e. airplane, train, etc).

  2. Lodging for the employee and members of the employee's household while traveling from the former home to the new home.
     
    NOTE: Meal expenses for the employee and/or the employee's household members are non-allowable expenses.
Allowable Expenses for Household Goods and Personal Effects
  1. The cost of supplies needed for packing, crating, and transporting household goods and personal effects of the employee and those of the members of the employee's household from their former home to their new home.
  2. Connecting or disconnecting utilities.
  3. The rental of a truck or trailer used to transport household goods and personal effects.
  4. The cost of shipping a car and/or household pets to the new home.
  5. The cost of storing and insuring household goods and personal effects within a period of 30 consecutive days from the day the items are moved from the former home until they are delivered to the new home.

RESPONSIBILITY OF CAMPUSES

The campuses are individually responsible for determining the method by which requests for the authorization of moving expenses are processed and approved. Campuses may set conditions for repayment to the University of a portion or all moving expenses if the employee does not remain an employee of the University for an agreed upon amount of time.

IRS REGULATIONS

In accordance with Internal Revenue Service regulations, all reimbursements to employees for moving expenses will be reported on the W-2 form. It is the employee's responsibility to determine the taxability of such payments.

PROCESSING PAYMENTS FOR AUTHORIZED MOVING EXPENSES

If the move is made by a commercial moving company, the employee may elect to either pay the full amount of the moving expenses and request reimbursement for the authorized amount, or make arrangements with the moving company to bill the University directly for the authorized amount.

Payments to the Moving Company

All payments for authorized moving expenses to be made directly to the moving company should be processed on a Non-P.O. Voucher with all receipts attached. A copy of the position offer letter or a statement officially authorizing the payment of moving expenses must also be included. If the moving company requires a purchase order, submit a PeopleSoft requisition to Procurement Services.

Payments to the Employee

For payment of authorized moving expenses to the employee, prepare an Employee Moving Expense Reimbursement Request and Summary Form (UM-17) and electronically attach it to the Travel and Expenses ("T&E") expense report along with a copy of the position offer letter or a statement officially authorizing the payment of moving expenses. The Employee Moving Expense Reimbursement form should be signed by the employee and authorized by a signature of the President, Vice President, Chancellor, Hospital Chief Executive Officer, or a designee. The T&E expense report will be forwarded to both the electronic approver and to the campus Accounting Office for review and approval.