MOVING/RELOCATION EXPENSE PROCEDURE
Last Updated: 9/24/2015
Effective January 1, 2018, moving/relocation reimbursements are taxable and subject to applicable withholding.
To be reimbursed for moving expenses, the principal place of work must be 50 miles farther from the former residence than the employee’s previous main job location. Individuals may be reimbursed for expenses that are reasonable and necessary.
Reimbursement of moving/relocation expenses should be accomplished as follows:
1) Employee submits receipt documentation to support expenses to their supervisor
2) Supervisor reviews receipt documentation to ensure that the requested reimbursement is reasonable and necessary and does not exceed $5,000 or, if an exception was made, the amount approved by the hiring department Vice President or the University Executive Leadership Team.
3) Supervisor provides receipts and approval for processing to the business office representative.
4) Business office representative reviews receipt documentation, retains in the College/Budget Center, and authorizes payment through the payroll system using the appropriate 5XXX account code.
5) Payroll processor for the College/Budget Center keys the online CU Special Pay.
6) Moving expenses are paid through the Payroll Office and are included in the employee’s next applicable paycheck/direct deposit. (Note: the amount reflected in paychecks/direct deposits will be net after applicable withholdings for FICA, Federal and State taxes).
Q. Can moving/relocation costs be paid directly to a moving company either by an AP voucher or procurement card?
A. No, reimbursements should be paid directly to the employee through the online CU Special Pay process.
Q. Even though all moving expenses are taxable, do I need to provide supporting documentation for expenses?
A. Yes, you must provide receipts up to the full amount allowed for reimbursement. The receipts must support reasonable and necessary costs related to moving/relocation.
Q. Who is responsible for collecting and maintaining the supporting documentation?
A. The hiring supervisor will review receipts to ensure requested reimbursement is reasonable and necessary. Once the review is complete, documentation is forwarded to the business office representative who is responsible for retaining the documentation and for ensuring payment is processed via payroll.
Q. What information should be given to the payroll processor?
A. The payroll processor needs basic information for processing the online CU Special Pay: Name, Employee ID, Employee Record Number, Amount Due and the appropriate Chartfield. The payroll processor does not need the back-up documentation, as that should be retained in the College/Budget Center.
Q. Why is my special pay less than my approved reimbursement amount?
A. The amount reflected in paychecks/direct deposits will be net after applicable withholdings for FICA, Federal and State taxes.
Q. If a new hire needs a reimbursement prior to their first paycheck, what can we do?
A. If necessary, an off-cycle payroll check can be requested using the Request for Off-Cycle Payroll Process form. A check can be available as early as the day after an employee’s hire date.
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